How Buying Archer Aviation (ACHR) Stock Today Could 10X Your Net Worth
Key Points
Archer’s stock has slumped since its market debut.
But it could soar a lot higher once the FAA clears its first commercial flights.
Archer Aviation (NYSE: ACHR), a developer of electric vertical takeoff and landing (eVTOL) aircraft, hasn't impressed many investors since it went public through a merger with a special purpose acquisition company (SPAC) in September 2021. The combined company's stock opened at $9.90 on its first day, but it now trades at about $6.
Like many SPAC-backed start-ups, Archer disappointed its initial investors by falling short of its own ambitious forecasts. Instead of hitting its targets of producing ten Midnight eVTOLs in 2024 and 250 eVTOLs in 2025, it has only manufactured two eVTOLs as of this writing.
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In 2025, it generated a mere $0.3 million in revenue while incurring a net loss of $618.2 million. Those numbers look disastrous, but I believe Archer could still deliver a ten-bagger gain (or more) from its current levels if it finally ramps up production over the next decade.
Image source: Archer Aviation.
Why could Archer Aviation's stock soar?
Archer's Midnight eVTOL carries a single pilot and four passengers, travels up to 100 miles on a single charge, and can achieve a maximum speed of 150 miles per hour. Compared to helicopters, eVTOLs are greener and easier to land in crowded urban areas.
At the end of 2025, Archer already had an "indicative" (non-committal) backlog of $6 billion with pending orders for approximately 1,200 aircraft. Its top customers include United Airlines (NASDAQ: UAL), Future Flight Global, Soracle (a joint venture between Japan Airlines (OTC: JAPSY) and Sumitomo (OTC:SSUM.F)), Ethiopian Airlines, and Abu Dhabi Aviation. All those companies want to use Midnight for short-range air taxi services. Archer's top investor, Stellantis (NYSE: STLA), will serve as its contract manufacturer for those aircraft.
By 2028, analysts expect Archer's revenue to soar to $512.4 million. With a market cap of $5.5 billion, it still looks reasonably valued at 11 times that estimate.
What challenges does it face?
However, the Federal Aviation Administration (FAA) hasn't approved Archer's first commercial flights. Its first air taxi flights in Abu Dhabi, which were scheduled to start this year, will likely be delayed by the intensifying conflict with Iran. So until the FAA approves its first flights and the situation in the Middle East improves, Archer's stock will remain out of favor.
That said, the global eVTOL market could still grow at a 23.5% CAGR from 2025 to 2034, according to Exactitude Consultancy. So if you expect Archer to overcome its challenges and scale up its deliveries over the next decade, it could deliver much bigger gains.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.