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    Archer Aviation (ACHR) Could Be 76% Undervalued On FAA Backed Midnight Flight

    Simply Wall St·08/04/2026 12:25:42
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    Archer Aviation (ACHR) completed a piloted roundtrip flight of its all-electric Midnight aircraft between Salinas and Monterey on July 30, working with the FAA as part of the White House eVTOL Integration Pilot Program.

    See our latest analysis for Archer Aviation.

    The successful Midnight test flight has arrived alongside mixed trading for Archer Aviation, with the stock’s 1 day share price return of 4.31% contrasting with a year to date share price decline of 40.47% and a 1 year total shareholder return decline of 53.15%. This suggests recent news is lifting sentiment after a tough stretch.

    If this kind of early stage air mobility story interests you, it can be useful to see what else is moving in related areas and check out 55 AI infrastructure stocks

    After Archer Aviation’s sharp pullback and brief rebound on the Midnight news, the question is whether most of the good news is already reflected in the price or whether the recent move still leaves clear upside available through valuation.

    Most Popular Narrative: 75.8% Undervalued

    Archer Aviation last closed at $4.84, while the most followed narrative on the stock argues for a fair value of $20.04. That gap is driving a very different view of what Midnight and the wider platform could be worth compared with the current market price.

    Archer Aviation is positioned to be the first to scale in the trillion-dollar Urban Air Mobility (UAM) market. Unlike competitors struggling with "production hell," Archer has addressed the manufacturing equation through its strategic partnership with Stellantis, which is funding and building Archer's high-volume factory in Georgia. With a robust order book (United Airlines) and a stated path to FAA certification for its "Midnight" aircraft in 2025/2026, the current valuation is described in this narrative as reflecting "bankruptcy risk" rather than "commercial launch" potential.

    Read the complete narrative.

    Want to understand why this narrative points to a much higher price for Archer Aviation? The focus is on aggressive revenue expansion, rising margins and a premium future earnings multiple that is normally reserved for market leaders. Curious which exact assumptions push fair value into the $20 zone instead of single digits? The full story brings those pieces together.

    Result: Fair Value of $20.04 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, Archer Aviation still faces clear risks, including executing on FAA certification timelines and overcoming the challenge of turning heavy net losses into a sustainable business model.

    Find out about the key risks to this Archer Aviation narrative.

    Next Steps

    The mix of excitement and concern around Archer Aviation will not stay balanced forever. It helps to review the data now and decide where you stand using the 2 key rewards and 4 important warning signs.

    Looking for more investment ideas beyond Archer Aviation?

    If Archer Aviation has you thinking about what else could be worth your time, do not stop here. The broader market holds other potential opportunities you might wish you had checked earlier.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.