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Air taxis are no longer just a concept from science fiction. Once a futuristic fantasy, urban air mobility is now drawing real investments, real partnerships, and real city plans. The air taxi market is set to hit $14 billion by 2032, fueled by next-gen battery tech boosting electric vertical takeoff and landing (eVTOL) range, efficiency, and sustainability.
Archer Aviation (ACHR) has been climbing steadily in this space, and on April 17, the company revealed a plan to launch an air taxi network in New York City with United Airlines (UAL). Its electric aircraft, Midnight, could soon shuttle premium passengers across the skyline in minutes, eventually expanding to serve everyday commuters.
Archer targets certification by 2026, with flight updates coming in May’s earnings call. Meanwhile, it is eyeing a 2025 launch in Abu Dhabi and is making similar moves in Los Angeles and San Francisco. With Federal Aviation Administration (FAA) approval on the horizon, Archer’s trajectory looks ambitious. But as Archer pushes the boundaries of urban air travel, should investors buy into the flying car stock now?
About Archer Aviation Stock
California-based Archer Aviation (ACHR) designs and develops aircraft and related technologies and services in the U.S. and internationally, operating through the commercial and defense sectors. Its market cap currently stands at $3.9 billion.
Offering eVTOL aircraft for urban air mobility (UAM) and its commercial model, Archer Direct, the company’s flagship ride-hailing service aims to lift commuters above traffic by leveraging existing airport terminals and helipads, bypassing the delays of constructing new vertiports. Through partnerships and a focus on electrified infrastructure, Archer is positioning itself to launch swiftly once regulators clear the runway. The sky, it seems, is just the beginning.
ACHR stock’s flight has been anything but smooth. The sky mobility innovator’s shares have tumbled 41% from their YTD high of $12.48, rattled by broader market turbulence. Yet, the bigger picture is still impressive. ACHR stock has soared 87% over the past year and returned a whopping 122% over the past six months, fueled by optimism around FAA certification and key production milestones.
Digging Into Archer’s Q4 Earnings Results
Archer Aviation’s Q4 earnings read like a high-stakes chapter in a startup’s saga, where ambition meets burn rate. On Feb. 27, the electric air taxi pioneer revealed widening red ink, posting a $198.1 million net loss, nearly doubling last year’s $109.1 million loss. Adjusted EBITDA fell deeper into the negative, hitting $94.8 million versus $85.2 million a year ago.
But while the losses turned heads, few were surprised. Archer’s story is still pre-revenue, navigating a path that demands heavy investment. The company is deep in the build phase, laying down the tech, infrastructure, and regulatory groundwork in a capital-intensive industry that does not reward haste.
Despite the red ink, Archer is flying with more fuel than ever. The company ended Q4 with $834.5 million in cash and equivalents, plus $6.8 million in restricted cash. That war chest swelled to $1.1 billion after a $301.8 million direct offering in early 2025, its largest liquidity position yet.
Now, the mission is to stretch that runway. Archer is tightening its annual burn rate, aiming to reach revenue lift-off in 2026 through aircraft deliveries. But turbulence remains. Delays in FAA certification or rising commercialization costs could push another capital raise by late 2025 or early 2026. To hedge that risk, Archer is targeting early revenue from defense contracts and UAE operations before full-scale commercial deployment.
Archer’s Electric Vision
Building on its partnership with United Airlines, Archer Aviation is moving full throttle toward launching electric air taxi services in New York City. The plan? Connect Manhattan to airports like JFK, LaGuardia, and Newark in just 5 to 15 minutes using its four-passenger eVTOL aircraft, Midnight. Local agencies such as the Port Authority of New York and New Jersey and the New York City Economic Development Corporation are backing the concept, showing interest in safe and sustainable air mobility.
United Airlines will assist in developing infrastructure, but key hurdles remain including FAA type certification and piloted test flights. So far, Archer has only flown autonomously. With certifications expected by 2026 and an update due in its Q1 earnings call, all eyes are on how fast Archer can turn this vision into liftoff.
What Do Analysts Expect for Archer Aviation Stock?
Needham’s Chris Pierce just doubled down on Archer Aviation, sticking with a “Buy” rating and a $13 price target. After witnessing Archer’s Midnight unveiling in NYC and attending the eVTOL Insights conference in Palo Alto, Pierce saw real traction in the air taxi race.
Needham believes Archer is one of just three real contenders - alongside Joby Aviation (JOBY) and Beta Technologies - shaping America’s eVTOL future.
ACHR stock has a consensus “Moderate Buy” rating overall. Of the nine analysts covering the stock, five recommend a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining two play it safe with a “Hold” rating.
Meanwhile, the flying car stock’s mean price target of $11.39 suggests that it could rally as much as 57% from the current price levels. The street-high of $13.50 implies potential upside of 85%.
