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Electric aviation and urban air mobility are reshaping the transportation landscape, and Archer Aviation (ACHR) is soaring to new heights with its latest strategic move.
The company has inked a deal with Ethiopian Airlines under its “Launch Edition” program, valued at up to $30 million, setting the stage to deploy an initial fleet of its innovative Midnight eVTOL aircraft. This partnership is pivotal as Archer prepares for its expected FAA certification and an international fleet launch later this year. Despite the excitement, shares plunged more than 7% on the following day, reflecting investor caution amid market volatility. Yet, the commercial collaboration underscores Archer’s ambition to transform urban travel with a greener, faster alternative to traditional transport.
As the eVTOL market continues to gain momentum, the question remains: Does the recent partnership signal a turning point for the flying car stock? Let’s find out.
About Archer Stock
Founded in 2018, Archer Aviation (ACHR) is pioneering the future of urban air mobility with its electric vertical takeoff and landing (eVTOL) aircraft. Specializing in the eco-friendly Midnight model, which carries one pilot and four passengers up to 100 miles at 150 miles per hour (mph), the company positions itself as a disruptive alternative to helicopters. Archer currently boasts a market cap of approximately $3.94 billion.
Over the past six months, shares have surged 130% on the back of FAA certification hopes and production milestones, though the stock has slid 27% in 2025 amid broader market turbulence.
From a valuation perspective, Archer is undoubtedly trading at a premium with 135x forward sales. This means that investors are betting on extraordinary future growth and profitability for Archer, far beyond typical industry expectations, while accepting a significant premium and accompanying risks if those high expectations fail to materialize.
Archer’s Strong Cash Position
Archer is a pre-revenue company focused on scaling its operations while ensuring sufficient liquidity from government contracts and funding. The company holds $834 million in cash and cash equivalents as of the end of its Q4. It raised an additional $300 million in February 2025, and is in advanced talks to secure another $390 million from Stellantis (STLA). This influx of capital is expected to drive the company toward its target of producing 650 aircraft annually. Archer is actively working to reduce its annual cash burn to sustain operations until it begins generating revenue from aircraft deliveries in 2026. However, should FAA certification be delayed until 2027 or if commercialization costs escalate, shareholders may face dilution through another capital raise in late 2025 or early 2026. To avoid this outcome, Archer is prioritizing the early generation of revenue via defense contracts and UAE operations ahead of a full commercial rollout.
Forging Strategic Partnerships
Archer Aviation is rapidly transforming its operations to secure a leading position in urban air mobility by forging key partnerships. The recent deal with Ethiopian Airlines, its second commercial partnership under the “Launch Edition” program, shows the company’s aggressive push into establishing an all-electric air taxi network.
Alongside this, Archer has been ramping up production capabilities with a dedicated manufacturing facility in Georgia, developed in partnership with Stellantis, targeting a production scale-up to 650 aircraft annually by 2030. The firm is also expanding its customer base with significant orders from customers like United Airlines (AAL) while securing lucrative U.S. Department of Defense contracts.
These strategic moves, including a joint development venture with Anduril Industries, are designed to position Archer as a formidable competitor in the burgeoning urban air mobility market.
What Do Analysts Expect for Archer Stock?
Analysts’ projections suggest that Archer’s revenue could jump to approximately $29 million in 2025, $151 million in 2026, and reach around $471 million in 2027 as deliveries accelerate.
Meanwhile, Wall Street remains moderately bullish on Archer. The stock holds a “Moderate Buy” consensus rating based on coverage from nine analysts. Among them, five rate it a “Strong Buy,” two a “Moderate Buy,” and two a “Hold.” The average analyst price target of $11.39 implies potential upside of more than 62%, while the Street-high target of $13.50 suggests more than 90% upside from current levels.
