Latest news with #ArcherAviation
Business Insider
24 minutes ago
- Business
- Business Insider
Will Archer Aviation (ACHR) Launch Its eVTOL Service in 2025? Here's What We Know
'The road is long,' sang The Hollies. For Archer Aviation (ACHR), the runway may be even longer. Between bureaucracy and FAA certifications, pilot training, investor pressure, and aircraft testing, the company continues to push toward its goal of launching commercial electric vertical takeoff and landing (eVTOL) flights in 2025. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Archer Aviation is making progress, closing deals, expanding partnerships, and building infrastructure. However, the plan to launch commercial flights in 2025 is still a stretch. Also, not all investors and analysts are aligned on the timeline. So, what are the real chances of a commercial flight this year? FAA in No Rush Archer Aviation has said it plans to begin air taxi service by the end of 2025. Its first commercial flights are expected to take place outside the U.S., likely in the United Arab Emirates (UAE). In Abu Dhabi, the company completed flight tests and secured approvals for vertiport infrastructure. The first Midnight aircraft is set to arrive in the region later this year. In the U.S., Archer Aviation has made progress on pilot readiness. Its in-house training program received FAA Part 141 certification in February 2025. It already holds Part 135 and Part 145 certificates for operations and maintenance. These authorizations are required before passenger flights can begin. However, the company still needs full type certification for its aircraft. Without it, commercial flights in the U.S. cannot proceed. According to Archer Aviation, about 75% of the certification process is complete. FAA officials have kept expectations broad. In July 2025, the agency's acting administrator said certified aircraft may begin flying 'before the end of 2028.' That statement did not rule out a 2025 launch, but it signaled caution. Archer Aviation and other eVTOL developers are working within a new FAA framework for powered-lift aircraft, which is still evolving. A separate hurdle is agency staffing. Earlier this year, the Department of Government Efficiency (DOGE) implemented federal cuts that resulted in FAA layoffs. That slowdown has affected timelines for all new aircraft types. Given these constraints, Archer Aviation has made the UAE its lead market. The country's aviation regulator has supported the program and attended test flights. The company is working with Abu Dhabi Aviation as its operating partner. If commercial flights begin in 2025, they are expected to happen in the Middle East. Capital, Partners, and Pressure Financially, Archer Aviation is well-positioned. The company raised $850 million in July 2025, bringing its total liquidity to about $1 billion. The raise was aimed at funding final development, though it led to a 15% drop in the share price on the day of the announcement. The company also has more than $6 billion in potential aircraft orders. This includes a conditional purchase agreement with United Airlines (UAL) for over 100 Midnight aircraft, and a contract with the U.S. Department of Defense for logistics testing. Street analysts remain split. H.C. Wainwright's Amit Dayal has issued a positive rating and price target, based on a 2025 launch assumption. Other analysts are modeling revenue beginning in 2026 instead. In May 2025, short-seller Culper Research accused Archer Aviation of overstating progress on manufacturing and readiness. Archer rejected the claims. The report, however, reignited concerns about timelines and disclosure. On the positive side, Archer Aviation is set to serve as the official air taxi partner for the 2028 Los Angeles Olympics. That target implies commercial readiness by 2027, giving investors a longer horizon to assess progress. Upside and Risk Factors Some signs point to upside. Test flights have occurred in varied environments, including extreme heat in the UAE. The White House has also introduced a federal pilot program to support eVTOL integration. Archer Aviation is participating in the initiative. There are risks as well. Certification delays, supply chain issues, and flight test problems could push timelines. Pilot readiness is another factor. Although the company's training academy is certified, its first cohort of Midnight pilots is still in development. Simulation systems are also undergoing review. Conclusion Based on current conditions, Archer Aviation is unlikely to begin commercial eVTOL service in the U.S. by the end of 2025. FAA certification appears more likely to arrive in 2026. There is, however, a moderate chance the company could launch limited commercial flights in the UAE later this year. Even a limited start in 2025 would represent a milestone for Archer Aviation. However, if there are any delays in getting certified or starting flights, the company's value could take a hit, and analysts might change their outlook. So, maybe where Archer is going, it doesn't need roads, but it certainly needs FAA certifications. Is Archer Aviation Stock a Good Buy? Despite the stock's speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a 'Moderate Buy' consensus with an average 12-month price target of $11.75. This implies a 15.31% upside from the current price.
Yahoo
10 hours ago
- Business
- Yahoo
Archer Aviation (ACHR) Stock Drops Sharply as Traders Hedge Bets
July 30 - Archer Aviation (NYSE:ACHR) dropped 10% over the past 5 days, and investors are clearly treading carefully ahead of the company's upcoming earnings report, due August 11. With options activity picking up and volatility expectations rising, the market is on edge. Warning! GuruFocus has detected 2 Warning Sign with ACHR. Roughly 97,000 options contracts traded hands, with more calls than puts. The put-call ratio hit 0.5, higher than its recent average of 0.27. That usually hints traders are buying more protection on the downside. Meanwhile, 30-day implied volatility rose to 86.2%, suggesting a 50% chance the stock could swing more than 12.1%, or about $1.23, in either direction after earnings drop. Still, not all the signals are bearish. ACHR is holding above both its 20-day and 50-day exponential moving averages, $9.80 and $8.16, respectively. Plus, the MACD indicator is still positive at 0.91, showing the bulls haven't totally checked out. With earnings looming, expectations mixed, and traders hedging bets, Archer's stock could be in for a bumpy, but interesting, ride. This article first appeared on GuruFocus.
Yahoo
10 hours ago
- Business
- Yahoo
Archer Aviation (ACHR) Stock Drops Sharply as Traders Hedge Bets
July 30 - Archer Aviation (NYSE:ACHR) dropped 10% over the past 5 days, and investors are clearly treading carefully ahead of the company's upcoming earnings report, due August 11. With options activity picking up and volatility expectations rising, the market is on edge. Warning! GuruFocus has detected 2 Warning Sign with ACHR. Roughly 97,000 options contracts traded hands, with more calls than puts. The put-call ratio hit 0.5, higher than its recent average of 0.27. That usually hints traders are buying more protection on the downside. Meanwhile, 30-day implied volatility rose to 86.2%, suggesting a 50% chance the stock could swing more than 12.1%, or about $1.23, in either direction after earnings drop. Still, not all the signals are bearish. ACHR is holding above both its 20-day and 50-day exponential moving averages, $9.80 and $8.16, respectively. Plus, the MACD indicator is still positive at 0.91, showing the bulls haven't totally checked out. With earnings looming, expectations mixed, and traders hedging bets, Archer's stock could be in for a bumpy, but interesting, ride. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13 hours ago
- Business
- Yahoo
Archer Aviation (ACHR) Stock Drops Sharply as Traders Hedge Bets
July 30 - Archer Aviation (NYSE:ACHR) dropped 10% over the past 5 days, and investors are clearly treading carefully ahead of the company's upcoming earnings report, due August 11. With options activity picking up and volatility expectations rising, the market is on edge. Warning! GuruFocus has detected 2 Warning Sign with ACHR. Roughly 97,000 options contracts traded hands, with more calls than puts. The put-call ratio hit 0.5, higher than its recent average of 0.27. That usually hints traders are buying more protection on the downside. Meanwhile, 30-day implied volatility rose to 86.2%, suggesting a 50% chance the stock could swing more than 12.1%, or about $1.23, in either direction after earnings drop. Still, not all the signals are bearish. ACHR is holding above both its 20-day and 50-day exponential moving averages, $9.80 and $8.16, respectively. Plus, the MACD indicator is still positive at 0.91, showing the bulls haven't totally checked out. With earnings looming, expectations mixed, and traders hedging bets, Archer's stock could be in for a bumpy, but interesting, ride. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Archer or EHang: Which eVTOL Innovator is Ready to Lead the Skies?
As the push for cleaner, faster and smarter transportation gains momentum, the electric vertical takeoff and landing (eVTOL) industry is rapidly emerging as a key player in urban mobility. Among the notable names in this space are Archer Aviation Inc. (ACHR) and EHang Holdings Limited (EH), two innovative companies aiming to revolutionize short-distance travel by enabling people to move faster and avoid ground-level congestion. U.S.-based Archer Aviation is currently advancing toward Federal Aviation Administration certification for its flagship Midnight aircraft. The company plans to roll out commercial air taxi services by the end of 2025. Meanwhile, China-based EHang is taking a different route. The company is developing fully autonomous, pilotless eVTOL aircraft. EHang has already received the world's first type certification for an autonomous eVTOL from China's aviation authority, giving it a strong first-mover advantage in the autonomous flight market. With the global eVTOL market expected to grow rapidly in the coming years, investor interest in next-generation air mobility is on the rise. Archer and EHang have taken different approaches in terms of strategy, location and progress toward certification. This raises an important question for investors: Which eVTOL stock is better placed to take the lead? Let's explore further to find out. Key Takeaways for ACHR Recent Achievements: Archer Aviation has made solid progress in the eVTOL space through notable milestones, strategic collaborations and key agreements. In July 2025, the company began test flights of its Midnight aircraft in Abu Dhabi, marking a significant step toward launching commercial air taxi services in the UAE. In June, ACHR and Jetex joined hands to integrate Jetex's network of more than 40 private terminals across more than 30 countries into the former's planned air taxi operations. This will help Archer Aviation gain access to key infrastructure in global cities. In the same month, ACHR joined a five-country alliance announced by the U.S. Transportation Secretary and acting FAA Administrator. The initiative includes Japan, the United Kingdom, Canada, Australia and the United States, and aims to align certification processes for eVTOL aircraft across these markets. This development is expected to speed up Midnight's regulatory approvals and open up opportunities for international expansion. Financial Stability: Archer Aviation ended the first quarter of 2025 with $1.04 billion in cash and cash equivalents. The company had no current debt and reported long-term debt of $0.74 billion. This strong financial position gives Archer the flexibility to support its civil and defense business plans while continuing to invest in innovation and advanced technologies. Challenges to Note: While Archer Aviation holds strong short-term potential, its long-term success remains uncertain. The eVTOL industry is still in its early stages and Archer's ability to design, certify and scale production will largely depend on how the industry matures and how the demand for such aircraft develops over time. Factors like safety, noise and affordability could impact public acceptance and slow down widespread adoption. Another challenge is that Archer has yet to generate any revenues. Until the company begins commercial operations and establishes a reliable customer base, its ability to deliver sustainable long-term value remains uncertain. Key Takeaways for EH Recent Achievements: EHang has made strong progress in scaling its autonomous eVTOL operations and expanding its presence in China's low-altitude aviation sector. In July 2025, the company partnered with Tsinghua University to launch a joint institute focused on low-altitude aviation technology to strengthen research and development for urban air mobility solutions. In the same month, EHang signed a strategic agreement with Reignwood Aviation Group to promote integration between traditional general aviation and next-generation eVTOL aircraft. In June, EHang secured a purchase order for 50 units of its EH216-S eVTOL aircraft from Guizhou Scenic Tourism Development Co. Financial Stability: EHang ended the first quarter of 2025 with $154 million in cash and cash equivalents. It reported a long-term debt of nine million and a current debt of $15 million. This indicates a strong financial position, which could support the company to reliably fund its ongoing operations and future growth plans. Challenges to Note: While EHang has made significant strides in autonomous eVTOL development, several challenges remain. The company's aircraft are designed for fully autonomous operations, which adds complexity to regulatory approval and may slow international expansion. Adoption in global markets could be delayed as many countries are yet to establish clear rules for pilotless passenger flights. Another concern is that EHang's commercial operations are still limited in scale. Until the company demonstrates consistent revenue generation and expands beyond trial programs and regional deployments, its long-term growth potential remains uncertain. How do EPS Estimates Compare for ACHR & EH? The Zacks Consensus Estimate for Archer Aviation's 2025 loss per share implies a year-over-year improvement, while the same for 2026 suggests a deterioration. The stock's near-term bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for EHang Holdings' 2025 earnings per share implies a year-over-year deterioration, while the same for 2026 suggests an improvement. The stock's 2025 and 2026 bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research Stock Price Performance: ACHR vs EH ACHR has outperformed EH over the past year. Shares of ACHR gained 151.3% compared with shares of EH, which gained 56.4%. Image Source: Zacks Investment Research ACHR's Valuation More Attractive Than EH EH shares are expensive on a relative basis, with its trailing 12-month Price/Book (P/B TTM) being 11.30X compared with ACHR's P/B TTM of 6.09X. Image Source: Zacks Investment Research ACHR's Debt-to-Capital Ratio More Favorable Than EH ACHR has a total debt-to-capital ratio of 5.96%, which is significantly lower than EH's total debt-to-capital ratio of 15.57%. This indicates that ACHR maintains a more balanced capital structure and is less dependent on debt financing. Image Source: Zacks Investment Research ACHR's Prospects Brighter than EH For Now Both Archer Aviation and EHang are leading players in the growing eVTOL industry, with unique approaches to urban air mobility. However, Archer currently appears to have the edge over EH. ACHR offers a stronger financial position, lower debt-to-capital ratio and more attractive valuation, backed by its steady progress toward FAA certification and multiple strategic partnerships enhancing its global reach. On the other hand, although EHang leads in autonomous flight development and has made notable advances in China, regulatory complexities outside its home market raise concerns. Thus, for investors seeking exposure to the eVTOL space, ACHR's financial strength, international presence, outperformance at the bourses and less leverage make it a stronger player than EH, at present. Both ACHR and EH currently hold a Zacks Rank #3 (Hold). You can see the full list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EHang Holdings Limited Unsponsored ADR (EH) : Free Stock Analysis Report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
