SPECIAL REPORT The Top 7 Stocks for 2024

This Flying Car Stock Could Be a Dominant Player In the eVTOL Space


  • Archer Aviation (ACHR) stock is among the leading ways investors can play the eVTOL sector.
  • These flying taxis have the potential to revolutionize urban transportation. 
  • The company’s Midnight aircraft is slated for a 2025 market release, but it’s not currently for sale.
ACHR stock - This Flying Car Stock Could Be a Dominant Player In the eVTOL Space

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Archer Aviation (NYSE:ACHR) surged 225% this year. The company recently inked an MOU with Air Chateau, expecting up to 100 Midnight aircraft purchases. Air Chateau paid a $1 million pre-delivery fee, with the potential for an additional $4 million upon a formal agreement. This will have significant implications for ACHR stock.

Indeed, the surge in ACHR stock is notable. That’s particularly true when comparing this company to stocks in the aerospace sector, which have lost about 6.6% on average. This shows that Archer Aviation is outperforming its peers so far this year.

Here’s more on why I think this stock is still worth considering for investors looking for a speculative growth stock to buy right now.

Financials Appear Robust

Despite being a pre-revenue operation, Archer has a financial outlook that remains compelling for speculators and growth investors. Indeed, the company reported no revenue or earnings in Q3, but its operating expenses came in at $46.2 million (down 47% year-over-year).

This led to a net loss of only $51.6 million, while cash and cash equivalents came in at $461.4 million, suggesting the company has plenty of capital to reach its production stage from here. Furthermore, Q4 estimates include GAAP total operating expenses of $100-110 million and non-GAAP operational costs of $75-85 million.

During Q3, Archer Aviation achieved key milestones. The company’s Midnight electric air taxi progressed from hover to full wing-borne, setting the stage for FAA testing within the next 12 months. Archer partnered for air taxi services in the UAE and India. Collaborations include interoperable charging with access to BETA’s electric aviation charging system. The company received an initial payment of approximately $142 million from the U.S. Air Force for recently announced contracts.

Air Taxis Flying to India in 2026

InterGlobe Enterprises, India’s top travel conglomerate, and Archer Aviation Inc. (NYSE: ACHR), a leader in eVTOL aircraft, have signed an MOU to launch an all-electric air taxi service in India, pending regulatory approvals.

InterGlobe’s Rahul Bhatia and Archer’s Nikhil Goel inked an MOU for a proposed partnership to introduce a revolutionary electric air taxi service in India, aiming to enhance urban mobility with safe, low-noise, and cost-competitive flights. The plan involves collaborating with local partners, building vertiport infrastructure, and acquiring up to 200 Archer Midnight aircraft for operations in India.

The Midnight aircraft, a piloted four-passenger eVTOL, is designed for quick, back-to-back flights with minimal charge time, offering a swift 7-minute trip from Connaught Place to Gurugram.

Buy ACHR Stock Now

To be sure, ACHR stock is a promising yet speculative investment for investors seeking companies with robust growth prospects. Pending deals suggest the company is well-positioned to capitalize on the eVTOL market once these aircraft become publicly accessible. The success of the Midnight aircraft reinforces industry trust.

That said, a lot can happen between now and 2025, and it’s unclear how the competitive landscape will evolve. Of course, the spoils in picking trends early typically go to those who invest early, so accepting some inherent risk is likely going to be necessary to capture these stocks’ upside, should the eVTOL space turn into what many think is possible. In this sector, I think Archer Aviation is among the stocks to consider right now, due to its catalysts and production timeline.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2023/12/this-flying-car-stock-could-be-a-dominant-player-in-the-evtol-space/.

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