Archer Aviation (NYSE:ACHR) stock is among the electric vertical takeoff and landing (eVTOL) companies worth paying attention to. Also know as flying cars, or air taxis, these aircraft could dominate our skies sooner than one may think. The Federal Aviation Administration (FAA) is working on approvals for Archer’s aircraft (and those of its competitors), which could pave the way for a new wave of innovation in the transportation sector we haven’t seen in a long time.

Archer’s Midnight aircraft is its flagship vehicle, and is garnering most attention from investors right now for good reason. That said, the company has also introduced larger-scale electric air transport akin to drones, focusing on carrying up to four passengers for short, 100-mile trips. Scheduled for a 2025 commercial launch, Archer aims to alleviate urban traffic challenges, positioning itself ahead of competitors like Joby Aviation.

The company also secured an agreement for electric air taxi services in Abu Dhabi, backed by financial incentives. The deal is anticipated by many investors and experts looking forward to eVTOL services in Abu Dhabi in two years. The project is also backed up by Stellantis’ (NYSE:STLA) and Pentagon’s deal with $142 million, which puts Archer in a good light for investors. 

With this in mind, let’s dive into whether ACHR stock is worth buying at current levels.

ACHR Stock Continues to Hover

Since the beginning of the year, ACHR stock has traded in a sideways pattern, though this company has seen its valuation come down considerably from last year’s peak. Momentum in this sector has waned, as some investors seem willing to sit and wait on the sidelines. Such a strategy certainly makes sense, with more announcements expected over the coming year.

That said, Archer has already accomplished much in recent quarters, and is well-positioned for growth. Over the past year, Archer Aviation allocated $316 million to research, testing, and factory construction. Completion of the factory is expected in the current year. While the company remains debt-free, it continually issues new shares for funding, leading to dilution concerns among investors.

Since 2022, ACHR stock has struggled to gain momentum, hovering around $5 per share. Investors eagerly await substantial share-price increases, but the timing remains uncertain. Long-term investors focus on overlooked opportunities with future potential, like Archer Aviation in the evolving eVTOL industry. 

Regulatory hurdles have slowed progress on this front, but Archer recently received FAA Part 145 certification, a step toward safe and compliant aircraft services. Additional catalysts, such as the full certification of the company’s Midnight eVTOL aircraft, could be the next catalyst that could take this stock a leg higher.

Stellantis is Confident About Archer

Archer Aviation has experienced significant volatility in terms of its stock price on Tuesday, despite initial gains. Stellantis, an automotive giant, bolstered confidence by purchasing approximately 8.3 million shares of ACHR stock. This move underscores Stellantis’ belief in Archer’s ability to launch its air mobility platform by 2025. CEO Carlos Tavares’ recent visit to Archer’s California facilities preceded this significant investment.

In January last year, Stellantis announced plans to mass-produce the Midnight aircraft as Archer’s exclusive manufacturer, streamlining Archer’s path to commercialization and saving millions. Construction of Archer’s high-volume manufacturing facility in Georgia remains scheduled for completion later this year. 

Stellantis describes the Midnight as safe, sustainable, and quiet, with a capacity for four passengers and a pilot optimized for short-distance trips of 20 to 50 miles with quick 10-minute charging times between flights.

Stellantis’ investment in Archer boosts the company’s credibility, and makes this a stock I think could lead the pack. There are other players in this sector, but Archer is poised to become a game-changer in inter-city air travel, aiming to redefine urban transportation in partnership with Stellantis.

ACHR Stock Remains a Promising Bet

Archer has progressed through FAA testing phases, with the Midnight aircraft clearing initial tests and advancing to faster flight demonstrations. These flights aim to validate its vertical takeoff, landing, and cruising efficiency. Full facility utilization awaits FAA certification, expected by late 2024, enabling mass production.

Analysts unanimously rate ACHR stock as a strong buy with an average price target of $10.33 per share. The highest price target on the street is $12 per share, while the lowest target is $9 per share, indicating 84% potential upside.

I think this is a stock worth buying at current levels.

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.