In 2023, Archer Aviation (NYSE:ACHR) investors saw a doubling in its share price as it is among the best-performing electric vertical takeoff and landing (eVTOL) stocks in the market. Wall Street analysts have provided ACHR stock with a favorable consensus “buy” rating — but not everyone is sold on this sector. After all, flying cars were supposed to be here decades ago (hello, Jetsons). So, if we’ve thought about this for seemingly forever, why hasn’t the technology already arrived? Let’s further evaluate in a Archer Aviation stock analysis.
In the case of Archer Aviation, the company’s core eVTOL technology is impressive. The company’s air taxis have garnered interest not only form investors, but also from corporate leaders. Well-thought-out partnerships play a part in the positive outlook provided by Wall Street, with Archer’s notable partners such as Stellantis validating its business model.
Archer’s Midnight eVTOLs are among the best-in-class flying taxis, able to travel 100 miles at a speed of 150 mph. This Archer Aviation stock analysis highlights why the company’s business model may be one worth diving into for investors.
Space Act Agreement with NASA
In collaboration with NASA, Archer is in the process of testing its electric aircraft battery cells. This partnership is aimed at elevating global supply chains, and could be a blue print for other industries to improve their electric aviation technology.
With both characterizing the battery, NASA and Archer thoroughly test safety, energy and capacity using advanced X-ray facilities. Archer chose these cells for the powertrain system of its Midnight electric air taxi.
Archer ultimately will decide on a proven cylindrical battery cell for its electric air taxi. However one thing is for sure — this partnership certainly appears to be a step in the right direction.
Collaboration with Atlantic Aviation
In other news, Archer Aviation and Atlantic Aviation signed an MOU to plant eVTOL sites in LA, NYC, Northern California and South Florida. This collaboration plans to launch services in the given locations by 2025 and expand to other locations. With the CCS signed by GAMA, BETA Technologies’ fast recharging systems will be installed using existing connections.
The collaboration’s objective is the electrification of Atlantic Aviation’s assets for Archer’s Midnight air taxi. Thus, Nikhil Goel, Archer’s Chief Commercial Officer, is eager to aim for electrification in congested cities, providing safe landing options for future travelers. Atlantic Aviation’s Chief Commercial and Sustainability Officer, John Redcay, also shares Goel’s sentiments for sustainable air travel.
The collaboration intends to lead in characterizing electric aircraft infrastructure by delivering superior experiences. Archer aims to revolutionize urban traffic with electric taxis, shortening commutes to 10-20 minutes and offering a safe, quiet and cost-competitive alternative to ground transportation. The piloted, four-passenger Midnight aircraft is designed for high-speed, sequential flights with less downtime.
Futuristic Outlook is an Advantage
Flying cars, or eVTOLS, are soon becoming a reality. They use electric motors and vertical takeoff for efficient and green urban transportation. Archer Aviation is passionately looking to build a market for eVTOLs while building the city’s air traffic network for fast and sustainable air travel.
Archer Aviation has also received significant funding for its endeavors. The company recently received a noteworthy $1 billion order for United Airlines (NYSE:UAL) and a $150 million investment from Stellantis (NYSE:STLA). With a total funding of more than $1.1 billion, Archer competes with Joby Aviation (NYSE:JOBY) to conduct successful test flights in urban environments.
ACHR Stock Certainly Looks Tempting Here
As we’ve already established in our Archer Aviation stock analysis, this company is one of the leading eVTOL players. This market has a massive TAM, with analysts projecting the air taxi space could be worth $37 billion by 2035. Just a small slice of this pie would be very lucrative for any company, hence the valuations these stocks are currently trading at.
Archer’s Midnight aircraft received a Special Airworthiness Certificate from the FAA last year. This consequently allows Archer to conduct test flights.
As the company continues to develop its technology and gets its air taxis flying, I do think there’s going to be a very strong narrative with this stock for some time. It’s about time the urban transportation infrastructure got updated. Archer is the company that could bring the Jetsons’ vision into reality.
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.
