Archer Aviation (NYSE: ACHR) has seen its stock price increase by over 200% in the past year, driven by strong demand for its Midnight air taxi and progress in its commercialization strategy. The company boasts a $6 billion order book, with each Midnight aircraft priced at $5 million, providing robust revenue visibility. Archer recently entered a $250 million agreement with Indonesia and has established agreements with the Abu Dhabi Investment Office to accelerate air taxi deployment in the UAE.
Archer’s 400,000 square-foot manufacturing facility in Georgia was completed in December 2022, supporting existing orders ahead of a targeted 2025 commercial rollout. The company’s first piloted Midnight aircraft is scheduled for delivery to the UAE this year, with commercial operations expected to commence in 2025. A recent five-nation alliance aims to streamline eVTOL certification processes, which could expedite Archer’s global deployment following the U.S. FAA type certification.
Despite a positive analyst consensus price target of $12 indicating a 20% upside from its current price of $10, Archer faces risks such as regulatory uncertainties, competition from better-funded firms, and execution complexities in scaling manufacturing. Historically, the stock has shown volatility, dropping nearly 90% during the 2022 downturn, emphasizing its speculative nature.
