We have been fantasizing about flying cars for thousands of years. In the Hindu texts, for instance, we find the Vimanas – the flying chariots of the gods. Jules Verne depicted flying vehicles in his book “Robur the Conqueror” in 1886. Of course, the movies and Hollywood, in particular, truly embedded this idea and fantasy in our heads. Films such as Metropolis (1927), Just Imagine (1930), and Back to the Future 2 from 1989 truly inspired us to envision ourselves crossing the city with a flying vehicle.
It’s little wonder, then, that Archer Aviation (ACHR) is garnering plenty of attention with its upcoming line of vehicles called “Midnight,” an electric vertical takeoff and landing (eVTOL) aircraft.
Finally, the future is here.
Although the stock is down just over 50% year-to-date, the company has created buzz with recent collaborations and investments. More importantly, Archer Aviation has recently finished its first “Midnight” aircraft and delivered it to the U.S. Air Force for additional examination. We seem the closest we’ve ever been to finally catching up with Hill Valley of 2015.
Our writer at Tipranks, Casey Dylan, has written more extensively on the company, but for now, here are 3 reasons for investors and the public to feel optimistic about ACHR stock.
- Inventive Technology and Scheduled Plans: Archer’s eVTOL aircraft are designed for urban air mobility. They can reach up to 150 mph and have a range of 100 miles, making them a promising solution for reducing urban congestion and travel time. The company plans to manufacture 10 vehicles in 2025 and 650 in 2028. Meanwhile, it has initiated an air mobility network in Los Angeles, set to operate in 2026. Finally, Archer surpassed its goal for 400 test flights in 2024, with 402 test flights completed.
- Strategic Partnerships: Archer has secured key partnerships with giants such as United Airlines (UAL) and Stellantis (STLA). These collaborations injected $400 million into its operational capabilities, enhancing investors’ belief in the company’s trajectory and ambitions. Another positive sign comes from Archer’s collaboration with the U.S. Air Force. Under the AFWERX Agility Prime contract, it has delivered its first aircraft to the Air Force, demonstrating its technology’s reliability and potential military applications and adding credibility to its commercial ambitions.
- Wall St. Shows Faith: As mentioned before, the stock has shed 50% of its value year-to-date, but that hasn’t stopped the bullish sentiment among Wall Street analysts. ACHR stock has five Buys, zero Holds, and Zero Sells, with a price target of $10, signaling a 228.95% change from the current price.
Conclusion:
There’s no doubt that Archer Aviation is taking the right steps to ensure we will finally fulfill our long-term fantasies of flying cars. For now, though, it is still a speculative play. Still, industry leaders are showing faith in the company’s endeavors, while Archer’s vision is going according to plan, painting a positive picture for its near-term future.
