The electric vertical takeoff and landing (eVTOL) industry has captured investors’ imaginations, promising revolutionary changes in transportation through urban air mobility. Archer Aviation (ACHR) stands out as a prominent player in this fast-growing sector, buoyed recently by favorable regulatory developments and meaningful strides toward commercialization. 

A new executive order from President Donald Trump, aimed at accelerating eVTOL testing and deployment, has significantly brightened the industry outlook. Additionally, Archer is making substantial progress internationally, notably in the UAE, where it’s preparing to deliver its flagship Midnight aircraft for commercial deployment. These positive developments have raised investor optimism about Archer’s future, with some speculating it could become a rare “millionaire-maker” stock.

In this article, we’ll delve deeper into Archer Aviation’s current progress, financial position, and potential challenges to help investors determine whether ACHR stock truly holds millionaire-making potential. With that, let’s dive in!

About Archer Aviation Stock

Archer Aviation (ACHR) is one of the leading companies in the rapidly growing electric vertical takeoff and landing (eVTOL) industry. The company’s flagship aircraft, Midnight, is built for urban air taxi use and features a unique 12-tilt-6 distributed electric propulsion system. The company is also targeting the defense sector through its partnership with Anduril Industries to develop hybrid-propulsion VTOL aircraft for next-generation military applications. ACHR’s market cap currently stands at $5.5 billion.

Shares of the electric air taxi company have gained 5.9% on a year-to-date basis.

Trump’s Executive Order Boosts Momentum for eVTOL Industry

In early June, President Donald Trump signed an Executive Order entitled “Unleashing American Drone Dominance.” The order called for speeding up the development of drone technologies, which the White House emphasized as essential for reducing dependence on foreign sources. The White House stated that the executive order will launch a “pilot program testing flying cars,” also referred to as eVTOL aircraft. The program will reportedly focus on air taxis, cargo transport, defense logistics, and emergency medical services.

Although the Trump administration made few direct comments about flying cars, the executive order noted that “Emerging technologies such as electric Vertical Takeoff and Landing (eVTOL) aircraft promise to modernize methods for cargo delivery, passenger transport, and other advanced air mobility capabilities.” With that, Trump wants to fast-track the rollout of eVTOL operations in the United States. To accomplish this, the Federal Aviation Administration (FAA) will choose at least five pilot projects that are expected to launch eVTOL operations in the near future.

The order directs the FAA administrator to “execute agreements with selected applicants, outlining project goals, regulatory needs, timelines, information sharing and data exchange mechanisms, and responsibilities.” The order also requests recommendations for the “permanent integration of eVTOL operations into the national airspace” and proposals for “future initiatives to maintain United States leadership in eVTOL flight.”

Archer CEO Adam Goldstein described the signing of the order as a “seminal moment” for both the company and the eVTOL industry. The company stated it plans to “closely coordinate with the White House, Department of Transportation, and the Federal Aviation Administration” to integrate its production expansion efforts with Trump’s executive order. Notably, ACHR stock jumped over 27% over the four sessions following the signing of the order.

ACHR Positioned to Capitalize on Massive eVTOL Market Opportunity

The eVTOL industry presents a significant market opportunity. The global eVTOL aircraft market is projected to grow from $2.1 billion in 2024 to $170 billion by 2034, representing a compound annual growth rate (CAGR) of 54.9% over that period. Amid this strong growth outlook, Archer’s Midnight aircraft is emerging as a frontrunner in the urban air mobility revolution — a market expected to expand at a CAGR of 26.3% from 2023 to 2033.

The Midnight aircraft, powered by electric batteries, is designed to carry a pilot and four passengers, taking off vertically like a helicopter while generating minimal noise. It will be capable of flying point-to-point routes and will be operated by Archer Aviation and its partners, like United Airlines (UAL). The company is also collaborating with international partners, such as Abu Dhabi Aviation, to develop air taxi networks. The prospect of eVTOL air taxis lies in helping passengers bypass traffic on busy routes — a service Archer believes will see insatiable demand.

Meanwhile, Archer is set to deliver its first piloted Midnight aircraft to the UAE this summer, ahead of its planned launch later in the year. To advance its launch efforts, Archer recently obtained design approval for the UAE’s first hybrid heliport, located in Abu Dhabi. Abu Dhabi aims to become the first city in the region to roll out commercial flying taxi services. Archer’s Chief Commercial Officer, Nikhil Goel, stated in late May that the company’s eVTOL aircraft could cut travel time between Dubai and Abu Dhabi to just 22 minutes, with fares around AED 800 ($217) — comparable to a premium taxi, but significantly faster and more affordable than a helicopter.

Archer is also seeking Federal Aviation Administration (FAA) certification for the Midnight aircraft to operate in the U.S. market. It’s a lengthy and difficult process due to the inherent risks of aviation, and during its Q1 update, the company noted that it has “received FAA approval for ~15% of the compliance verification documents.” However, the U.S. executive order supporting eVTOL testing and pilots could help speed up the process. For instance, in mid-June, Archer, along with the U.S. Federal Aviation Administration and Department of Transportation, announced the formation of a multinational alliance aimed at advancing the deployment of eVTOL aircraft.

It’s also worth noting that Archer Aviation has partnered with Anduril to co-develop a hybrid VTOL aircraft designed for critical defense applications. The partnership positions the company to capitalize on rising government defense budgets, strengthening its long-term growth potential. Archer also has a strategic partnership with Palantir (PLTR) to jointly develop flight software and next-generation aviation systems.

ACHR Financials

On May 12, Archer announced operating and financial results for the first quarter of 2025. First of all, it’s important to note that Archer is a pre-revenue company and has not generated any revenue to date. With that, it’s crucial to evaluate how the company is handling its cash burn. 

Archer reported an adjusted EBITDA loss of $109 million in Q1, driven by increased spending on staffing and materials, reflecting its confidence in progressing toward commercial service. Notably, the figure was slightly better than feared. At the same time, the company’s quarterly cash burn came in at $94.6 million.

Turning to the balance sheet, the company’s total cash position exceeded $1 billion as of March 31. Its total debt stood at $78.3 million. So, this actually means the company currently boasts the strongest balance sheet in the industry. Moreover, Archer recently completed an $850 million stock offering, generating net proceeds of $817.1 million. This brings the company’s cash position to around $2 billion. Assuming the cash burn rate remains unchanged, the company has approximately 4.5 years of runway before needing additional funding, a strong position, in my view.

Meanwhile, the company is reportedly sitting on a $6 billion order backlog, signaling robust future demand. This suggests that if the company manages its cash burn effectively, its substantial backlog could provide a strong source of future cash inflows.

Looking ahead, management forecasts Q2 adjusted EBITDA loss in the range of $100 million to $120 million. Analysts expect the company to generate its first meaningful revenue of $143.91 million in FY26, with profitability anticipated in FY29. Notably, the company aims to ramp up production to two aircraft per month by year-end and reach an annual output of 650 units by 2030. The Midnight aircraft is reportedly priced at about $5 million per unit, representing a potential revenue opportunity of $3.25 billion per year by FY30. Still, the pricing for its air taxi service remains unclear, making it too early to determine how much revenue the company will generate or when it will reach profitability.

What Do Analysts Expect for ACHR Stock?

Wall Street analysts are optimistic about Archer’s long-term potential, as evidenced by a consensus “Moderate Buy” rating. Out of the nine analysts offering recommendations for the stock, five rate it as a “Strong Buy,” two give a “Moderate Buy” rating, and the remaining two advise holding. The mean price target for ACHR stock is $11.94, indicating 20.2% upside potential from current levels.

The Bottom Line on ACHR Stock

Putting it all together, I view Archer Aviation as a high-risk, high-reward play. The stock provides growth-oriented investors with exposure to the emerging eVTOL industry, which has significant market potential. Still, it’s important to note that risks persist, including regulatory hurdles, dependence on partners, and significant cash burn. If the company can navigate all of these smoothly and successfully launch commercial operations, the stock could generate substantial returns for investors, potentially turning some into millionaires.

Still, I don’t recommend buying ACHR at current levels. The stock’s momentum appears to be waning, as it has been forming lower highs since mid-May. The next obvious support level is the round number of $9. A break below that could push the stock toward the $8 zone, where I would suggest beginning to accumulate a position or adding to an existing one.

On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.