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An occasional joke that people make on the internet when they're complaining about some annoying or disappointing aspect of modern life in the 21st century is: "We were promised flying cars by now!"

This fascination with flying cars is part of why the electric vertical takeoff and landing (eVTOL) industry has been so intriguing for investors. What if, someday soon, we could all commute to work in the sky -- without getting stuck in traffic, car exhaust and fender benders, or the time-wasting, humdrum frustrations of land-based vehicles?

I wish it were possible, but I'm not betting money on it. Don't get me wrong: I'm rooting for eVTOL technology. The designs look cool. I love the idea of everyday transportation powered by clean energy. I love flying in planes. And I wish we could all experience the futuristic thrills of getting around in everyday life with flying cars or air taxis.

But unfortunately, I believe the eVTOL industry might be stuck in a holding pattern for a long time. There are a few big reasons why I'm bearish on eVTOL stocks.

Image source: Getty Images.

1. Batteries are expensive
To be lighter than air, eVTOL aircraft need lightweight batteries. The past few years have seen significant improvements in the capacity, energy density, and lightness of lithium-ion batteries used in electric vehicles on land. But eVTOL batteries are expensive. As of April 2025, aviation-grade battery costs were about 10 times higher than electric car batteries. An eVTOL industry website (eVTOL.Travel) estimates that eVTOL aircraft purchase prices range from $410,000 to $4 million per aircraft, and battery and energy costs make up about 25% to 30% of manufacturing costs.

eVTOLs have special challenges with batteries -- they need enough power to provide lift and enough battery life to keep an aircraft in the sky. Batteries are much less energy-dense than traditional hydrocarbon aircraft fuel, and making multiple vertical takeoffs and landings (like would be required for everyday round-trips with passengers) causes batteries to drain faster.

This puts extra engineering challenges on eVTOLs. They have to take off and land and operate in a more battery-intensive way compared to conventional aircraft like airline planes. These engineering problems could be solvable, and aviation battery costs might come down. The price of eVTOLs is also expected to decline if and when the industry can ramp up production. But this challenge of more expensive batteries driving up prices is one big area of uncertainty that the eVTOL industry faces.

2. FAA regulations are complicated
The Federal Aviation Administration (FAA) has the final say on what kinds of vehicles are allowed to fly and where. New aircraft are required to go through a seven-phase FAA certification process. As of May, Archer Aviation (ACHR +3.55%) and Joby Aviation (JOBY +1.49%) had made progress into Phase 4 of this FAA process, according to CNBC.

Several eVTOL companies have completed test flights and are exploring the start of passenger service. But as of this writing in October, no eVTOL company has completed full FAA certification. According to reporting from Gulf News in the United Arab Emirates (where eVTOL companies are also exploring air taxi service), eVTOLs might not achieve U.S. certification with the FAA until mid-2027 at the earliest.

Delays in FAA certification might be the biggest risk to the eVTOL industry. Developing these aircraft is expensive. For example, Joby is burning over $200 million per quarter as of September 2026. Not every company will have enough cash to stay in business until they reach commercialization.

JOBY Joby Aviation$4.77+$0.07 (+1.49%)

NYSE · As of 3:09 PM ET 10/23/26

3. Aircraft need lots of infrastructure
Even if eVTOL aircraft were fully approved and certified by the FAA tomorrow, many questions remain unanswered:

Where would they fly -- would there be a dedicated low-altitude airspace where these special aircraft could operate?
Who would oversee air traffic control for eVTOLs? Companies like Joby have been collaborating with the FAA on airspace integration and proof-of-concept programs to include eVTOLs in the existing air traffic control system. But this is another regulatory issue that needs to be addressed.
Where would they land -- would there be dedicated helipads or vertiports for these helicopter-like vehicles to take off, or could they truly take off from any location and land on any parking lot or residential street?

America's airports rely on complex systems for air traffic control. Commercial airlines have high standards for safety and maintenance. All this involves a lot of government bureaucracy, friction, and expense. None of this can be easily bypassed or waved away with a magic wand. By the time some of these regulatory issues and infrastructure questions get sorted out, many eVTOL companies might run out of cash.

4. What's the business model?
eVTOL vehicles might be a case of "good product, bad business." There might not be a large-enough viable market for air taxi services. How many people can currently afford to hire helicopters instead of taking a taxi, rideshare, or bus?

According to Fortune Business Insights, the global helicopter market size was about $47.9 billion in 2025. But according to a helicopter market report from Rotortrade, eVTOL aircraft are likely to have a "limited" impact on demand for traditional helicopters until 2030, and might not replace light helicopters for urban air mobility until 2030 to 2035.

Even if there is enough room in the sky for helicopters and eVTOL aircraft, there might not be enough room in the market for both. So far in 2026, the share prices of the top five best eVTOL stocks have plummeted. Boeing is down less than the rest, but it's a well-established aerospace company that sells more than just eVTOL aircraft.

BA data by YCharts

It feels like there are still too many unknowns about the business model for eVTOL transportation. Even if battery technology improves, manufacturing scales up, prices come down, the FAA regulations are resolved, and the right infrastructure is organized, I'm skeptical about investing in eVTOL companies.

I don't know if these companies can make enough money by selling flights to commercial passengers (like an airline or rideshare company), or if there is enough demand from the kinds of buyers who already buy helicopters to buy these vehicles directly. No doubt, eVTOL companies are building something futuristic and exciting, but it's also financially risky. I wouldn't rate any pure-play eVTOL stock as a buy right now.

The air taxi networks will be in Austin, Houston and the Dallas-Fort Worth area, with the goal of increasing connectivity between major airports, business hubs and tourist destinations.

Archer Aviation (ACHR +0.26%), a developer of electric vertical take-off and landing (eVTOL) aircraft, went public through a merger with a special purpose acquisition company (SPAC) on Sept. 16, 2021. Its stock opened at $9.90 per share the following day, but now trades at less than $4 per share. Let's see why Archer's stock fell -- and where it might be in 2030.

Image source: Archer Aviation.

Why didn't Archer Aviation's stock take off?
Archer's Midnight eVTOL carries a single pilot and four passengers, travels up to 100 miles on a single charge, and reaches a maximum speed of 150 miles per hour. It expects its eVTOLs to eventually replace helicopters for short-range flights because they're greener, quieter, and easier to land in densely populated urban areas.

Archer's biggest backers include Stellantis (STLA +0.83%), which plans to help it mass-produce its eVTOLs, and United Airlines (UA +3.28%), which intends to use its aircraft for airport-to-home flight services. It plans to sell its aircraft to other commercial airlines and government customers, and it's building its own first-party air mobility service.

$3.88+$0.01 (+0.26%)

NYSE · As of 11:55 AM ET 10/22/26

However, the Federal Aviation Administration (FAA) hasn't approved Archer's first commercial flights yet. Moreover, Archer is trailing its top competitor, Joby Aviation (JOBY +2.48%), in the FAA's multi-stage certification process. Joby's S4 is also faster and more power-efficient than Archer's Midnight, and Joby uses more in-house components than Archer.

Those unfavorable comparisons -- along with its lack of near-term commercial revenue, ongoing losses, and high valuations -- weighed down Archer's stock over the past five years. It's also locked in trade secret and patent lawsuits with Joby and Vertical Aerospace.

Where will Archer's stock be in 2030?
From 2025 to 2028, analysts expect Archer's revenue to rise from less than $1 million to $507 million. With a market cap of $3 billion, it trades at six times its 2028 sales. That rosy outlook assumes the company achieves FAA certification, ramps up its production with Stellantis, starts converting its multi-billion-dollar backlog into revenue, and resolves its legal disputes.

If Archer matches analysts' estimates through 2028, grows its revenue at a 20% CAGR through 2030, and trades at ten times its current year's sales by the final year, its market cap could rise nearly fivefold to $14.6 billion by the end of the decade. Therefore, Archer is still a potential multibagger -- but it could sink a lot lower if it misses any of its near-term goals.

Flying taxis could soon be a new way for travelers to get around busy cities. Joby Aviation (JOBY +0.87%) and Archer Aviation (ACHR -1.49%) are two leading electric vertical take-off and landing (eVTOL) companies that are getting close to obtaining approval for their respective aircraft and could soon be transporting passengers.

Investors, however, may nonetheless be disappointed that it hasn't happened yet. Meanwhile, the companies continue to burn through cash. They are risky investments, but both possess a lot of growth potential in the long run.

Joby has lost more than 60% of its value this year, while shares of Archer are down by close to 50%. But at more modest valuations, now may be a better opportunity for investors to buy one of these stocks. Below, I'll look at which one may be the better buy.

Image source: Getty Images.

Which company is in a better cash position?For a business that's not profitable, an important thing for investors to consider is how much cash it has on hand, and just how much it's burning through. This can provide valuable insight into which one may be in greater need of raising cash in the future and thus pose the greater dilution risk.

Here were the key numbers from their recent financials, for the period ending June 30:

Archer Aviation: $1.6 billion in cash and short-term investments, and $305.5 million used up from its day-to-day operations over the past six months. Joby Aviation: $2.3 billion in cash and short-term investments, and $317.6 million used up from day-to-day operations in the past six months.Both companies are burning through a comparable amount of cash, but with Joby having more near-term assets on its books, it may be less in need of cash than Archer. However, that doesn't mean Joby won't need to raise funds, but it may just require a smaller cash infusion.

Joby generated nearly $40 million in revenue last quarterNeither of these businesses is profitable, and that's not likely to change anytime soon. But Joby is already generating a fair amount of revenue after acquiring Blade Air Mobility's passenger business last year, an aviation company that offers helicopter, seaplane, and private jet flights. This business was a major reason Joby generated $38.6 million in revenue in its most recent quarter.

JOBY Joby Aviation$4.65+$0.04 (+0.87%)

NYSE · As of 4:00 PM ET 10/20/26

However, ultimately, both businesses remain deeply unprofitable, with Joby's net loss totaling $245 million during the quarter and Archer posting a loss of $263 million. The revenue they generate is limited relative to the expenses they incur, and that's unlikely to change until their air taxis receive approval and begin commercial operations.

Archer’s valuation remains lowerThere are many similarities between these two eVTOL stocks, although retail investors have generally been more bullish on Joby in the past, believing that it may be closer to attaining the necessary FAA certification from regulators.

At $4.7 billion in market cap, Joby's valuation is still considerably higher than Archer's, whose valuation is around $3.1 billion.

ACHR Archer Aviation$3.98-$0.06 (-1.49%)

NYSE · As of 4:00 PM ET 10/20/26

Both are highly risky, but I'd go with ArcherIf Joby and Archer obtain FAA certification for their respective aircraft, both of these stocks could skyrocket in a hurry. There are a lot of similarities between the two companies, but what tips the scales for me is the more modest valuation for Archer, which is why it's the stock I'd go with. I don't believe that Joby has done enough to show that its business should be so much more valuable than Archer's.

However, for investors who are brave enough to consider buying either one of these struggling stocks, they'll need a lot of patience, because even if FAA certification does come, it could still be a long road ahead before either of these companies gets out of the red. In the meantime, both stocks are likely to remain highly volatile.

Let me begin with what seems like a pretty easy prediction: By the end of 2028, Archer Aviation (ACHR -4.68%) will more than triple its revenue. In fact, if it continues on the path that it's on, Archer's present-day revenue will explode -- possibly growing by four digits. Here's how.

$4.07-$0.20 (-4.68%)

NYSE · As of 4:00 PM ET 10/16/26

What the next two fiscal years could look like for Archer Currently, Archer is still living through its pre-certification days. Indeed, while its Midnight aircraft can fly, it hasn't gotten the FAA approval needed for full-scale commercial passenger operations. That's why Archer has barely squeezed out $7 million in revenue over the last 12 months.

Data by YCharts

As shown in the chart above, analysts have high expectations for Archer. Between today and the end of 2028, it's generally believed that Archer will grow revenue to about $506 million.

This is, of course, a forecast, not a guarantee. Archer may earn less revenue than expected in 2028; it may earn more. But given some of the company's recent activities, I believe there's good reason to believe Archer could actually exceed these expectations.

For starters, there's Archer's planned acquisition of three subsidiaries from Boeing, one of which is a profitable drone business that generates more than $200 million in annual revenue. If this deal closes, Archer will secure about two-fifths of that $500 million in annual revenue.

There's also Archer's partnership with Anduril. Last November, Archer announced an agreement to supply electric powertrains for Anduril's Omen, an autonomous aircraft developed in partnership with a defense company based in the United Arab Emirates (UAE). The UAE has, in fact, committed to purchasing 50 Omen systems.

Image source: Archer Aviation.

Meanwhile, in July, Archer and Anduril unveiled a jointly developed autonomous aircraft platform with two versions: Thunder, designed for military operations, and Halo, for commercial.

Finally, there's Archer's electric vertical takeoff and landing (eVTOL) business, arguably its future bread and butter. Archer has been steadily working through the regulatory process to get its eVTOL Midnight certified for commercial operations. Although no definite date has been established for when Midnight will carry paying passengers, the progress it has made has me convinced it will carry that certification in 2028, if not before.

What does this mean for Archer stock? All of these -- the drone business, the partnership with Anduril, and its own passenger commercial operation -- could combine to generate $500 million in revenue in 2028. That doesn't, however, mean that Archer stock will then soar over that same period.

The sad truth is that $500 million in annual revenue is not enough to plug Archer's spending hole. Last quarter, Archer's operating expenses totaled about $284 million, more than half of its projected annual revenue two years from now.

Two years from now, however, Archer could be a much stronger business, with a certified Midnight and multiple sources of revenue. Aggressive investors with an appetite for risk might want to consider adding some shares today, before that potential growth is reflected in the price.

Archer Aviation (NYSE:ACHR – Get Free Report) and Park Aerospace (NYSE:PKE – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability This table compares Archer Aviation and Park Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Archer Aviation N/A -40.74% -35.93% Park Aerospace 18.42% 11.21% 10.25% Valuation & Earnings This table compares Archer Aviation and Park Aerospace”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Archer Aviation $300,000.00 10,972.78 -$618.20 million ($1.08) -3.96 Park Aerospace $73.30 million 7.90 $11.27 million $0.72 36.49 Park Aerospace has higher revenue and earnings than Archer Aviation. Archer Aviation is trading at a lower price-to-earnings ratio than Park Aerospace, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk Archer Aviation has a beta of 3.27, suggesting that its share price is 227% more volatile than the S&P 500. Comparatively, Park Aerospace has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations This is a summary of current ratings and target prices for Archer Aviation and Park Aerospace, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Archer Aviation 1 2 6 0 2.56 Park Aerospace 0 1 3 0 2.75 Archer Aviation currently has a consensus target price of $11.00, suggesting a potential upside of 157.31%. Park Aerospace has a consensus target price of $42.50, suggesting a potential upside of 61.78%. Given Archer Aviation’s higher possible upside, equities analysts plainly believe Archer Aviation is more favorable than Park Aerospace.

Institutional & Insider Ownership 59.3% of Archer Aviation shares are held by institutional investors. Comparatively, 77.8% of Park Aerospace shares are held by institutional investors. 5.6% of Archer Aviation shares are held by company insiders. Comparatively, 7.1% of Park Aerospace shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary Park Aerospace beats Archer Aviation on 10 of the 14 factors compared between the two stocks.

(Get Free Report)

Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.

About Park Aerospace (Get Free Report)

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

If you're a high-risk/high-reward type of investor, you've almost certainly looked at stocks in the hottest emerging industries like quantum, electric vertical takeoff and landing (eVTOL) air taxis, and satellite networks.

But these industries are full of would-be superstars, and it's almost a sure bet that not all of the players will end up winners. Here are 6 of the best bets in these competitive sectors, and how much a $1,000 investment in each one could be worth by 2030. We'll look at what will have to go right in order for them to succeed, and what will happen if they don't.

Image source: Getty Images.

1. D-Wave Quantum
Industry: Quantum computing.

Current price: $14.56/share

Number of shares in $1,000: 68.7

Unlike many of its fellow quantum computing start-ups, D-Wave Quantum (QBTS -1.89%) has focused primarily on quantum annealing, which is particularly well-suited to tackling system optimization problems. But D-Wave recently announced it was entering the traditional gate-model system market as well.

The Risk: While quantum annealing is an important niche, it's starting to look like a less-profitable niche than gate-based quantum computing. And while that means D-Wave may have made the right move by getting into that market, it's a late entrant compared to both its peers and big corporations like IBM (IBM +2.07%). It risks getting left in the dust on both fronts.

How much will $1,000 be worth in 2030? $200 to $4,000

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2. Rigetti Computing
Industry: Quantum computing.

Current price: $14.04/share

Number of shares in $1,000: 71.2

Rigetti Computing (RGTI -2.87%) designs and manufactures gate-model quantum computing systems powered by superconducting quantum processors. It also offers third-party developers cloud-based access to its quantum systems, allowing them to be used by customers without a quantum computer of their own.

The Risk: It's starting to look as though Rigetti's quantum processors -- which use quantum particles created by superconductors -- aren't as accurate as processors that use trapped-ion particles. Rigetti's highest deployed two-qubit gate fidelity system is 98.71%, a far cry (at least, in computing terms) from rival Quantinuum's (QNT -6.55%) best-in-class 99.921%.

Rigetti will need to demonstrate that it can compete in a highly competitive landscape, and there's a lot of time for things to change.

How much will $1,000 be worth in 2030? $250 to $6,000

3. Archer Aviation
Industry: eVTOL Air Taxis

Current price: $4.96/share

Number of shares in $1,000: 201.6

Archer Aviation (ACHR -3.63%) develops eVTOL aircraft designed for short-distance air taxi service. It owns the Hawthorne Municipal Airport, just over 4 miles from LAX (by air), and plans to operate its air taxi services from there and in various other major U.S. and world cities.

The Risk: The biggest risk for Archer is that the Federal Aviation Administration (FAA) will find a serious flaw in its eVTOL design that delays commercial approval beyond 2028, when the company is supposed to be the official air taxi of the Los Angeles Olympics. In that case, its stock would likely lose over 50% of its value.

How much will $1,000 be worth in 2030? $400 to $5,000

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4. Joby Aviation
Industry: eVTOL Air Taxis

Current price: $5.44/share

Number of shares in $1,000: 183.8

Like Archer, Joby Aviation (JOBY -2.63%) develops eVTOLs for air taxi service.

The Risk: Besides a risk of the same FAA issues faced by Archer, there's a real question about how much money eVTOL air taxi services can realistically make once the novelty wears off. On the other hand, the technology being developed might have potential for use in military drones.

How much will $1,000 be worth in 2030? $400 to $5,000

5. AST SpaceMobile
Industry: Satellite Communications

Current price: $50.97/share

Number of shares in $1,000: 19.6

AST SpaceMobile (ASTS -7.77%) is building a space-based cellular broadband network that will allow smartphones and other wireless devices to connect directly to satellites without requiring specialized equipment.

The Risk: AST may not be able to keep up with its deep-pocketed rival, Starlink, which is owned by Elon Musk's Space Exploration Technologies (SPCX -4.02%), or SpaceX.

How much will $1,000 be worth in 2030? $500 to $3,000

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6. SoundHound AI
Industry: AI Voice Chatbots

Current price: $5.39/share

Number of shares in $1,000: 185.5

SoundHound AI (SOUN -1.61%) develops AI-powered voice recognition to create conversational AI agents for its customers, who use them in automated systems like restaurant ordering systems and customer service help lines.

The Risk: With AI agents facing so much recent bad press and with AI incredibly unpopular in general, the risk for SoundHound is now twofold: industry competition and customer revolt.

How much will $1,000 be worth in 2030? $150 to $6,000

The urban air mobility market is rapidly ascending as electric aircraft near commercial launch. Investors are debating whether Archer Aviation (ACHR -5.44%) or Joby Aviation (JOBY -5.51%) is the better long-term bet.

Both companies aim to revolutionize transportation with electric vertical takeoff and landing (eVTOL) aircraft. Archer focuses on strategic aerospace partnerships and manufacturing scale, while Joby emphasizes its integrated aerial ridesharing platform. As they navigate strict regulatory hurdles, investors eyeing the future of flight must compare their financial health and market strategies.

The case for Archer AviationArcher Aviation develops advanced aviation technologies, including its Midnight aircraft, for commercial and defense applications. It maintains a conditional purchase agreement with United Airlines Inc (UAL -2.81%) for as much as $1.5 billion in aircraft. Customer concentration like this adds a layer of risk to the business, as a single partner represents a huge portion of the future order book. The company is also acquiring units from Boeing Co. (BA -0.46%) to grow its defense capabilities. It has a manufacturing relationship with Stellantis (STLA -2.23%) and works with the UAE government on flight networks.

According to its latest annual report, in FY 2025, revenue reached about $300,000. The company reported a net loss of roughly $618 million during this period. This resulted in a massive negative net margin, illustrating the immense costs involved in developing aerospace technology before mass production begins.

As of its December 2025 balance sheet, the current ratio stands at approximately 19.9x. Its current ratio measures the ability to pay short-term debts with assets that can be converted to cash quickly. The debt-to-equity ratio is roughly 0.1x, which compares total debt to the amount of money shareholders have invested. Free cash flow was negative $511.7 million, representing the cash remaining after paying for capital expenditures.

The case for Joby AviationJoby Aviation develops electric air taxis and operates an aerial ridesharing platform. It has integrated its services with Delta Air Lines (DAL -2.51%) to provide premium transportation to airports. The company also holds contracts with L3Harris Technologies (LHX +0.54%) for defense applications. Following its acquisition of Blade Urban Air Mobility, Joby now provides air charter broker services in New York and Europe. This allows the company to generate revenue while it continues the lengthy process of aircraft certification.

According to its latest annual report, in FY 2025, revenue reached about $53.4 million, representing growth of more than 39,000% over the prior year. This jump was largely due to the integration of newly acquired services. Joby reported a net loss of approximately $930 million, leading to a net margin of negative 1,740%.

As of its December 2025 balance sheet, the current ratio stands at nearly 24.1x. The debt-to-equity ratio is roughly 0.0x, indicating almost no debt relative to shareholder equity. Free cash flow was negative $563.8 million, reflecting the heavy spending required to build a fleet among industrial stocks. Free cash flow is the cash left over after a company pays for its operations and capital equipment.

Risk profile comparisonArcher Aviation faces intense competitive risks and potential delays in certification from the FAA. These delays could prevent the company from meeting its commercial launch timelines. Its high capital requirements to scale manufacturing at the Hawthorne Airport and its Georgia facility expose it to financial instability. The company is also managing litigation risks regarding trade secret allegations brought by its rival. Supply chain disruptions from single-source manufacturing partners add further pressure to its development schedule.

Joby Aviation faces significant legal risk following a federal jury verdict in October 2026 that awarded over $100 million in damages in an intellectual property lawsuit. The company must also successfully integrate its recent acquisitions, including Blade and Resonant Sciences, to achieve its goals. It faces substantial financial risk from continuous operating losses and heavy reliance on the scale-up of its manufacturing facility in Ohio. Furthermore, the company remains vulnerable to shifts in airspace regulations and the safety risks inherent in early-stage electric aviation.

Valuation comparisonJoby Aviation appears to be the more attractively priced option based on its significantly lower sales multiple. The P/S ratio measures market capitalization against sales over the past twelve months, while the Forward P/E compares share price to future earnings estimates.

MetricArcher AviationJoby AviationForward P/En/an/aP/S ratio546.0x46.0xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

In 2025, the U.S. federal government created the framework for real-world testing of eVTOL aircraft, a concrete step toward making Archer's and Joby's visions a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for either company's aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.

Archer is taking steps to refurbish the small Los Angeles Hawthorne airport for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. It's highly speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue, but a lot has to go right between now and then.

Joby recently tested its Blade aircraft in New York City across different charging environments and on real-world routes it proposes, such as flying from JFK Airport, on the city's outskirts, into Manhattan. Joby is further along with its manufacturing capabilities, embedding Toyota philosophies throughout its system. Even though it is further along the path to market, analysts don't see Joby turning a profit through 2030, a year in which consensus projects $2.3 billion of revenue and a net loss of around $195 million.

Both Archer and Joby are early-stage aircraft businesses with significant risk for potential investors. Joby's business model of flying short, in-demand routes in major cities seems more attainable after its testing in New York City. Its price-to-sales ratio of 46 is high but well below Archer's. If you want to take a flyer on an upstart electric aircraft maker, go with Joby.

Despite their high-flying ambitions, it's been a year of descent for Archer Aviation (ACHR +0.16%), Joby Aviation (JOBY +0.61%), and WeRide (WRD -9.17%) investors. The three next-gen mobility stocks are down 38%, 56%, and 44% this year, respectively.

All three stocks were on Cathie Wood's radar this week. The co-founder and CEO of Ark Invest added to all three existing positions on Wednesday for her family of exchange-traded funds. Most of her funds have generated positive double-digit returns this year, so why load up on some of Ark's laggards in 2026? Let's take a closer look at these latest purchases.

Image source: Getty Images.

1. Archer Aviation Archer Aviation stock is down 38% this year, and that's better than the two other stocks singled out in this column from Wood's shopping list on Wednesday. The stock's performance has faced roadblocks, which is ironic, as the developer of the emerging electric vertical takeoff and landing (eVTOL) aircraft industry is in the middle of its "No Roads" flight tour.

Since kicking off in California last month, Archer has been working with the Federal Aviation Administration (FAA) alongside state and local partners to showcase piloted flights of its Midnight aircraft. Starting the tour in the Los Angeles area doesn't appear to be a coincidence. Archer is already the official air-taxi provider of the 2028 Summer Olympics, and it needs to clear final regulatory hurdles to get off the ground in more ways than one.

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Archer already has deals in place with commercial airlines, promising to cut commuting times at major metropolitan airports for those with the means to pay for the premium air-taxi service. It also has military partners in place, another outlet for growth, given the sleek and quiet aircraft's ability to carry out essential missions with limited landing space.

Bears will knock the company today for its red ink and the lack of trailing revenue, but the latter will ramp up dramatically in the next few years:

2026: $15 million 2027: $143 million 2028: $511 million 2029: $1.39 billion 2030: $2.25 billion Profitability will take longer to materialize. Analysts see that happening in 2029 on an adjusted basis and the following year on a reported basis. It has a strong cash position to see it through the next couple of years of losses, a potent balance sheet position that shrinks its $3.6 billion market cap to a mere $2.2 billion in enterprise value.

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2. Joby Aviation Joby Aviation is Archer's largest competitor. They are both flying through the certification process, but Joby is the one commanding the larger market valuation. It currently commands a market cap of $5.7 billion, which drops to an enterprise value of $4.2 billion once you factor in its equally robust net cash position.

Joby and Archer are expected to top $1 billion in annual revenue by 2029, but Joby isn't expected to turn a profit until 2031 at the earliest. Joby Aviation stock has plummeted 56% this year, the biggest drop among the three sinkers in this column.

Why is Joby commanding a market premium to Archer? Joby is marginally ahead in the FAA certification process, but one should follow the other quickly for approval. Joby has advantages in the current range and speed of its aircraft, but they both have promising partnerships in place to scale quickly when the time comes to fly, literally and figuratively.

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3. WeRide WeRide is another personal mobility play with a strong net-cash position. The Chinese company is a leader in autonomous driving products and services, backed by strong liquidity that reduces its $1.6 billion market cap to an enterprise value of $931 million.

WeRide holds autonomous-driving permits in nine different countries -- including the U.S. market -- but it's still in the process of developing and deploying operations in most of those territories. This is already a competitive niche, but it's one that can have many winners among self-driving car stocks, given the global opportunity.

In the meantime, WeRide is growing. Revenue has risen 73% through the first half of this year, and the top line should more than double in each of the next three years. It has burned through more than $200 million of its cash in the first six months of this year, so the race is on to see if it can turn that corner before it has to raise more money.

Analysts don't expect profitability until 2029. If that does happen -- and it hits Wall Street's revenue target of $1.6 billion that year -- its market cap should be substantially higher than where it is today.

Key Takeaways Archer Aviation outperformed its industry over three months despite a 3.5% share-price decline.Archer is advancing eVTOL commercialization through acquisitions, infrastructure and Midnight flight tests.Archer's strong liquidity supports growth, but its premium valuation may limit near-term upside. Archer Aviation Inc. (ACHR - Free Report) shares have lost 3.5% in the past three months, outperforming the Zacks Aerospace-Defense industry’s decline of 14.8% as well as the broader Zacks Aerospace sector’s loss of 16%. However, it underperformed the S&P 500’s return of 3.7% in the same time frame.

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Other industry players, such as Virgin Galactic (SPCE - Free Report) and Embraer (EMBJ - Free Report) , have delivered a similar performance in the past three months. Shares of SPCE and EMBJ have gained 16.2% and 18.9%, respectively, in the said period.

ACHR’s stronger performance compared with the broader aerospace and defense industry, along with gains among key peers, could make the stock appealing to investors. However, investors should assess whether ACHR’s solid fundamentals and growth prospects can sustain long-term gains. Evaluating its growth drivers, earnings outlook and key risks will be crucial in determining the stock’s potential for further upside.

Tailwinds for ACHRArcher Aviation continues to advance its position in the eVTOL market through strategic acquisitions, infrastructure development and successful flight demonstrations aimed at accelerating the commercialization of electric air taxis.

In September 2026, Archer Aviation announced the expiration of the Hart-Scott-Rodino waiting period for its planned acquisition of Boeing’s Wisk Aero, SkyGrid and Insitu subsidiaries. The transaction is expected to close by the end of 2026, subject to remaining regulatory approvals and other customary conditions.

Archer Aviation is also building the infrastructure needed for commercial eVTOL operations. The America’s Consortium for Electric Skyways (ACES), launched by Archer Aviation, BETA Technologies and Macquarie Capital, plans to expand interoperable charging infrastructure across Texas and support up to 250 air taxi sites across major airports and metropolitan areas over the next decade.

Meanwhile, Midnight continues to demonstrate progress toward commercial readiness. In September 2026, the aircraft completed a roughly 40-mile roundtrip flight between Salinas and Hollister, CA, in about 12 minutes each way, reaching speeds of 125 mph. These developments could strengthen Archer Aviation’s commercialization outlook as regulatory support, infrastructure and flight testing continue to advance.

Estimates for ACHR’s 2026 Sales and EarningsThe Zacks Consensus Estimate for ACHR’s 2026 sales implies year-over-year growth of 5467.7%. The consensus estimate for its 2026 losses indicates a year-over-year decline.

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The stock’s annual bottom-line estimates have moved north over the past 60 days.

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ACHR’s ValuationIn terms of valuation, ACHR’s forward 12-month price-to-sales (P/S) is 30.89X, a premium to the industry average of 2.07X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry average.

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Virgin Galactic and Embraer are trading at a discount in comparison with ACHR. SPCE’s forward 12-month price-to-sales is 2.09X, while EMBJ’s forward 12-month price-to-sales is 1.47X.

Liquidity Position of ACHRACHR has a current ratio of 10.21. The ratio, being more than one, indicates that ACHR possesses sufficient capital to pay off its short-term debt obligations.

Its industry peers, Virgin Galactic and Embraer, also maintain current ratios above one. SPCE has a current ratio of 1.62, while EMBJ also holds 1.44.

What Should an Investor Do?ACHR’s demand and healthy liquidity position provide a solid foundation for long-term growth. However, the stock’s premium valuation relative to the industry and key peers may limit its near-term upside potential.

Considering these strengths alongside valuation concerns, existing shareholders may consider holding the stock, while prospective investors could wait for a more attractive entry point. Tracking ACHR’s earnings growth, valuation and execution will remain important when evaluating a new investment.

ACHR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ACHR plans to develop Hawthorne Airport as the operational hub for its Los Angeles air-taxi network.ACHR intends to use Hawthorne as an innovation hub for next-generation AI-powered aviation technologies.ACHR expects airport and hangar redevelopment to support its broader urban air mobility strategy. Archer Aviation Inc. (ACHR - Free Report) is expanding beyond aircraft development by building infrastructure to support its planned advanced air mobility (AAM) and air-taxi operations. A key part of this strategy is its control of Hawthorne Municipal Airport near Los Angeles International Airport and Downtown Los Angeles. Archer Aviation plans to develop the airport as the operational hub for its Los Angeles network while also using the site as an innovation hub for next-generation AI-powered aviation technologies.

The airport could play an important role as Archer Aviation develops its urban air mobility network. The company plans to connect major population and business centers with key transportation hubs in selected metropolitan areas, integrating eVTOL flights into passenger journeys through airline relationships and developing vertiports with infrastructure partners. Hawthorne Airport could provide a physical base for supporting operations as Archer Aviation works toward commercial air-taxi services.

Archer Aviation also views the airport as more than an operating location. The company plans to use Hawthorne as an innovation hub for developing and commercializing next-generation AI-powered aviation technologies. This adds a technology-development element to the airport investment and could provide a location where Archer Aviation advances aviation technologies alongside its planned air-taxi operations.

Archer Aviation expects to continue investing in Hawthorne Airport as part of its broader urban air mobility strategy. Planned investments include airport and hangar redevelopment and the deployment of advanced aviation technologies. If successfully developed into its planned Los Angeles hub, the facility could become an important part of Archer Aviation’s commercial infrastructure and support the broader rollout of its advanced aviation operations.

Companies Building Infrastructure for Advanced Air MobilityThe development of dedicated infrastructure is becoming an important part of the advanced air mobility market. Joby Aviation, Inc. (JOBY - Free Report) and Eve Holding, Inc. (EVEX - Free Report) are also developing networks and facilities designed to support future electric air-taxi operations.

Joby Aviation is developing transportation hubs and vertiports across target markets, with infrastructure supporting electric-aircraft takeoff, landing and charging. The company is advancing vertiport networks in key markets, including the United States and Dubai.

Eve Holding is pursuing a partner-driven approach to vertiport infrastructure, working with airports and aviation-service providers. Its planned operations focus on airport connectivity and regional mobility using eVTOL aircraft.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 52.38% and growth of 15.63%, respectively.

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ACHR Stock Is Trading at a DiscountArcher Aviation is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 1.87X compared with the industry average of 5.34X.

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ACHR Stock Price PerformanceOver the past six months, ACHR shares have fallen 16.3% compared with the industry’s 18.3% drop.

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ACHR’s Zacks RankArcher Aviation currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investing in a business while it's still in its early growth stages can be risky, but it can also result in significant gains if it turns out to be successful. Companies involved in the development of electric vertical take-off and landing (eVTOL) aircraft are prime examples of that. Flying air taxis represent an intriguing growth opportunity for investors, but regulators in the U.S. haven't approved any just yet.

Archer Aviation (ACHR -2.78%) is an eVTOL company that hopes to be a leader in the industry and has been working to obtain certification for its Midnight aircraft. Its stock has been falling sharply in value this year, and currently it has a market cap of around $3.8 billion. Could buying the stock today position investors for potential 10x returns in the future?

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If Archer's eVTOL aircraft gets approval, the stock could easily soarThe market has been bearish on Archer's stock this year as there hasn't been any sign that approval for the company's air taxi is forthcoming. And until that changes, the company will continue to incur heavy losses and burn through a lot of cash. Archer does generate revenue, having acquired multiple companies, including Hawthorne Airport in California, which may be a future hub for its air taxis. However, with just $5 million in revenue for the June quarter, that's nowhere near close enough to cover the company's operating expenses, which totaled $284 million.

Earlier this year, the company said it was on track to begin air taxi operations sometime in 2026. However, with nothing seemingly on the horizon, investors appear to be concerned that this may not be the case. As a result, the stock has been in a tailspin. But if that changes and there are signs that certification for the Midnight aircraft is coming, that could instantly light a fire under the stock.

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Archer could 10x in value, but it's by no means a guaranteeIf Archer's Midnight aircraft commences operations and begins transporting passengers, and significant revenue starts to flow in for Archer, the stock would likely become much more valuable than it is right now. To get to 10x its value, its market cap would climb to around $38 billion, which may not be unreasonable given the potential for eVTOLs to revolutionize travel.

Archer has significant growth opportunities ahead. But with its losses mounting and there being plenty of risk, it's not going to be a suitable option for most investors. However, for those willing to take on the uncertainty, this could be a good growth stock to simply buy and hold.

Joby Aviation (JOBY -1.96%) and Archer Aviation (ACHR -2.69%) are looking to upend the aviation industry. That's a tall task, given the sector's highly regulated and capital-intensive nature. But they are making material strides toward that goal, as they each advance their electric vertical takeoff and landing (eVTOL) technology.

From a business perspective, things are going well. But what about from a finance perspective? Neither one generates material revenue, so both are burning through cash at a rapid rate as they build their aerospace businesses. It looks like Joby may have more room to run, at least for now.

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Joby and Archer: Lots of money out, little money in In the second quarter of 2026, Joby Aviation reported $38.6 million in revenues. Archare Aviation reported just $5 million. That's not a lot of revenue when you consider the spending these two companies are doing as they build their businesses.

Joby's cost of revenue was $28.3 million, resulting in a small gross profit. However, selling, general, and administrative (SG&A) costs were $76.5 million. And then research and development expenses were nearly $195 million. When all was said and done, the company's loss from operations was roughly $260 million.

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Archer's story is no better. The $5 million in revenue it produced cost $4.3 million to generate, leaving a small gross profit. However, SG&A costs came in at nearly $94 milloin in the second quarter. Research and development costs totalled $186 million. All in, Archer's loss from operations was $279 million.

As start-ups, it isn't surprising that Archer and Joby are bleeding cash. But investors have to understand that the cash supporting these businesses is limited. At the end of the second quarter, Joby had roughly $2.2 billion in cash and investments. Archer Aviation had about $1.5 billion.

Joby has an edge, but don't get too excited From a pure numbers perspective, Joby has more room to run. If it continues to loss $260 million each quarter, the $2.2 billion in cash could last another two years or so. Joby's $1.5 billion in cash at a roughly $280 million quarterly loss would last only a little over a year.

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That's if nothing changes, which is highly unlikely. After all, Joby just successfully showcased its autonomous flight technology with a cross-country flight. And Archer just showed off its tech with manned flights between local California airports, basically proving it can operate an air taxi service. At this point, there's a strong reason to believe both will be able to bring their eVTOLs to market.

This helps explain why aviation giant Boeing (BA +1.78%), among other companies, is partnering with Archer. And why Joby is working with Virgin Atlantic and Delta (DAL +1.00%). Basically, neither Joby nor Archer is flying solo here, which suggests that more capital will be relatively easy to raise when it is needed.

Almost there, but not quite Archer Aviation and Joby Aviation are high-risk stocks that only the most aggressive of growth investors should consider. But they are both making material progress as businesses, even as they continue to burn through cash at a rapid clip. That's pretty normal for a start-up.

The big difference here is that each of these eVTOL companies is working with major partners that could be important sources of capital. In other words, investors should monitor cash burn as it occurs, but it is highly likely to be replenished before there's any risk to either company's business. That said, if either company fails to replace its cash balances in a timely fashion, it might be time to ditch the aircraft maker.

Key Takeaways ACHR is using its Silicon Valley line to support early Midnight builds before Georgia ramps up production.ACHR is applying lessons from early builds to the design and ramp-up of its Georgia manufacturing operation.ACHR is focusing on propulsion, flight controls and composites while sourcing other components. Archer Aviation Inc. (ACHR - Free Report) is using a “golden manufacturing line” approach to improve the transition from early Midnight builds to high-volume production. The strategy allows Archer to use its Silicon Valley facility for final assembly during the new product introduction phase while preparing its Georgia facility for larger-scale manufacturing.

The approach could help Archer identify and address production issues before expanding manufacturing volumes. Lessons learned from the early Midnight builds are being applied to the design and ramp-up of the high-volume manufacturing operation in Georgia. This creates a process through which manufacturing experience from early aircraft can be incorporated into later production activities.

Archer is also focusing its internal development efforts on key technologies, including electric and hybrid propulsion systems, flight control software and composites. For components that are not considered differentiating technologies, the company plans to use the existing aerospace supply base. This combination of internal development and external sourcing could help Archer concentrate manufacturing resources on critical aircraft technologies.

The production strategy is important as Archer works toward certification and early commercial deployments. The company is currently ramping up production capabilities across manufacturing and test facilities in California and Georgia. If the lessons from early builds can be effectively incorporated into the high-volume facility, the manufacturing approach could support a more structured transition from aircraft development to larger-scale production.

Companies Expanding Aerospace Production LinesThe growing need for scalable aerospace manufacturing is encouraging companies to expand production infrastructure and improve manufacturing processes. Northrop Grumman Corporation (NOC - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) are increasing manufacturing capabilities to support higher production requirements.

Northrop Grumman is expanding advanced manufacturing capacity designed to support development, testing, rapid prototyping and high-volume production across aerospace and defense programs.

L3Harris is expanding production facilities and manufacturing capabilities across aerospace and defense programs. Its production investments are designed to increase capacity and support the transition toward higher-rate manufacturing.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 52.38% and growth of 15.63%, respectively.

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ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.09X compared with the industry average of 5.62X.

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ACHR Stock Price PerformanceOver the past six months, ACHR shares have risen 5.3% against the industry’s 6.6% fall.

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ACHR’s Zacks RankArcher currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It's no secret that this has been a brutal year for electric vertical takeoff and landing (eVTOL) investors, with stocks of all the leading players, including Joby Aviation (JOBY +0.80%) and Archer Aviation (ACHR +0.00%), down sharply. Here's a look at why, and what could lead eVTOL stocks to come back into favor.

A difficult 2026 for eVTOL stocks Without a doubt, the key to regaining some of the ground lost in the chart below is Federal Aviation Administration certification, followed by the launch of commercial operations. I will return to this point in a moment, but first, it's worth noting that the disappointing share price performance this year isn't solely due to FAA certification.

Certification in itself is critical, but any further delay in profitability may increase cash-burn rates for money-losing companies, which may well have to raise capital amid rising interest rates, with investor appetite waning.

JOBY data by YCharts

Not just a certification issue In addition, expectations for the commercial viability of a key part of eVTOL's business model, providing passenger transportation to airports, were called into question.

Delta Air Lines has partnered with Joby Aviation, and United Airlines has partnered with Archer Aviation. As such, investors were disappointed in March when United's chief executive officer, Scott Kirby, reportedly made negative remarks about the potential for eVTOLs to fly into congested airports.

The subject matter came up again recently at the Morgan Stanley Annual Laguna Conference, where, according to S&P Global Market Intelligence, United Airlines Chief Financial Officer Michael Leskinen noted that "air traffic control is a really difficult problem," particularly at the kind of congested airports where eVTOL passengers will get the most utility. However, he said United would continue to work toward solutions on the matter, noting: "How we evolve that into congested airspace is something that's going to take a few more years."

This kind of commentary is a concern because airport shuttles are widely believed to be relatively easy and early revenue generators for eVTOL companies.

Image source: Joby Aviation.

FAA certification timelines To be sure, there's still a powerful case for eVTOL stocks, and the sell-off is arguably creating a good buying opportunity. That case will inevitably be strengthened should Joby or Archer achieve certification for their eVTOLs, because profit timelines appear to have been pushed back.

For example, in February 2024, Joby's CEO JoeBen Bevirt said the company's accomplishments "kept us moving steadily toward our goal of launching commercial passenger operations in 2025." To be fair, that assumption included a potential launch in Dubai. However, Joby does not yet have a commercial passenger operation in service in the U.S. or Dubai, let alone FAA certification.

Archer's management told investors that "the goal of the company is to commence commercial operations in 2025" at a Barclays investor conference in May 2024. Like Joby, Archer doesn't yet have a commercial passenger service in operation.

To be clear, neither company is responsible for making decisions on behalf of the FAA or other regulatory bodies, and delays are part and parcel of the aviation world. Still, if investors have priced commercial operations into their assumptions, then they would likely have been disappointed by events.

Image source: Getty Images.

Why FAA certification matters Achieving FAA certification is likely to change the narrative around the companies, shifting them from unprofitable, cash-burning, speculative investments operating under regulatory uncertainty to growth companies on the cusp of scaling operations and production in line with end-market growth.

Certification will also de-risk their business models, create order opportunities, and increase their ability to raise capital if necessary. It's the one major catalyst both Joby and Archer Aviation can deliver on, and the good news is they are both making progress to that end.

The race for electric vertical takeoff and landing supremacy is heating up as Archer Aviation (ACHR -0.44%) and Joby Aviation (JOBY -0.32%) move closer to full commercialization in 2026.

While both companies are developing electric air taxis to revolutionize urban travel, they are taking distinct paths toward profitability and scale. This comparison examines their financial health, strategic partnerships, and the risks facing these high-growth industrial players.

The case for Archer AviationArcher focuses on its Midnight aircraft, targeting both commercial passenger journeys and a robust expansion into defense stocks. The company recently strengthened its position by acquiring subsidiaries from Boeing (BA -1.68%), including Wisk Aero and Insitu, which added an established defense business across dozens of countries.

In FY 2025, the company recorded revenue of nearly $300,000 as it began its initial operations. This period resulted in a net loss of approximately $618.2 million, which was an increase from the $536.8 million net loss reported in the prior year. The net margin for the period was nearly -206,066.7%, reflecting the high costs of development relative to early-stage sales.

As of its December 2025 balance sheet, Archer maintains a debt-to-equity ratio of approximately 0.1x. This ratio compares the total debt of the business to its shareholder equity, suggesting a relatively low reliance on borrowed funds. The current ratio is roughly 19.9x, indicating a strong ability to cover short-term obligations, though free cash flow was negative $511.7 million.

The case for Joby AviationJoby is building a vertically integrated aerial ridesharing platform that will integrate directly into the booking apps of its partners. The company has secured deep manufacturing and financial support from Toyota and Delta Air Lines (DAL +1.41%) to build its network. Its acquisition of the Blade Urban Air Mobility platform has also provided an established base of charter customers and existing airport relationships.

During FY 2025, Joby generated revenue of approximately $53.4 million, representing growth of nearly 39,183.1% over the prior fiscal year. Despite this rapid growth, the company reported a net loss of roughly $929.8 million for the year. The net margin was approximately -1,740.5%, as the company continues to invest heavily in its flight test programs and infrastructure.

As of the December 2025 balance sheet, the company carries a debt-to-equity ratio of 0.0x, meaning it has essentially no total debt. Its current ratio of approximately 24.1x shows a substantial cushion of liquid assets to meet near-term costs. Free cash flow for the period was nearly negative $563.8 million as Joby continues building its large-scale manufacturing facility in Ohio.

Risk profile comparisonArcher faces significant risks from its history of operating losses, which total approximately $2.3 billion since the company was founded. Achieving FAA type certification for the Midnight aircraft remains a critical hurdle that could be delayed by technical or regulatory challenges. The company also relies on third-party suppliers and faces the difficult task of scaling high-volume manufacturing while managing complex government defense contracts.

Joby continues to face financial pressure from persistent net losses and the massive capital requirements needed to build its national vertiport network. Execution risk is high as the company finishes the final stages of regulatory compliance for its air carrier operations. Furthermore, Joby depends heavily on the ongoing support of strategic partners like Toyota and Delta Air Lines to realize its commercial goals.

Valuation comparisonJoby currently appears cheaper on a relative basis when comparing the P/S ratio, which measures market value against sales over the past twelve months. Neither company has a Forward P/E because future earnings estimates remain negative for both businesses.

MetricArcher AviationJoby AviationForward P/EN/AN/AP/S ratio618.1x52.0xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with Joby Aviation, though Archer makes this closer than the conventional wisdom around these two companies implies. Archer completed a significant FAA certification milestone in May 2026, and Boeing's backing and a United Airlines partnership add commercial credibility that most eVTOL rivals cannot match. For investors comfortable with early-stage risk, Archer is a legitimate contender.

But Joby is further along in the certification process overall, currently deep into the FAA's final verification phase. Its operational test flights in Texas are integrating with commercial airspace in ways that bring revenue-generating passenger service closer. The Toyota manufacturing partnership adds decades of large-scale manufacturing discipline that a start-up building complex aircraft cannot easily develop on its own timeline. And Delta Air Lines as an anchor investor means Joby has a major airline with skin in the game.

Both companies still have a lot to prove, and true passenger service for either is still likely a year or two away. But Joby seems to have more of the critical pieces in place right now, giving it a stronger early advantage.

Archer Aviation ACHR , the developer of the Midnight electric air taxi, said the U.S. antitrust waiting period has expired on its planned acquisition of
Boeing's (BA) Wisk Aero, SkyGrid and Insitu subsidiaries, satisfying a key condition for the deal to close. Archer shares were down 1.23% in premarket.

The deal still needs other customary closing conditions to be met, including further regulatory approvals that Archer says are underway, and the company continues to expect completion by the end of 2026.

The acquisition would combine the three Boeing units' work in autonomy, eVTOL aircraft, unmanned aircraft systems and airspace intelligence with Archer's own aircraft and its AI foundation model, ZEE. Archer pitches the combined business as an end-to-end physical AI platform for aerospace and defense.

Key Takeaways ACHR is using its Launch Edition program to pursue commercial air taxi markets beyond the United States.ACHR is working with UAE regulators and partners to develop Midnight operations and vertiport networks.ACHR is targeting international markets across Europe, the Middle East, Africa and Asia-Pacific. Archer Aviation Inc. (ACHR - Free Report) is expanding its commercialization strategy beyond the United States through its Launch Edition program. The company is offering aircraft, technologies and services to governments and customers in selected international markets, with the United Arab Emirates (“UAE”) leading the initiative. This approach could provide Archer with another pathway to introduce Midnight in overseas markets.

The UAE represents an important part of Archer’s international commercialization efforts. The company has been working with the country’s General Civil Aviation Authority to establish a regulatory pathway for commercial operations. Following hot-weather flight testing, Archer is preparing to deliver additional Midnight aircraft for initial passenger operations while working with strategic partners to develop a vertiport network across Abu Dhabi and the UAE.

Archer is also targeting a broader group of international markets as it prepares for commercial operations. The company says its progress toward commercial readiness is driving demand across Europe, the Middle East, Africa and Asia-Pacific. Its international strategy involves working with governments and customers, while planned air taxi networks are intended to connect major population and business centers with key transportation hubs.

The Launch Edition program could give Archer an opportunity to develop its international commercial presence alongside its U.S. operations. Establishing regulatory pathways, delivering aircraft and supporting vertiport networks across selected markets could help create multiple avenues for Midnight deployment. As Archer advances its international commercialization plans, overseas markets could become an additional source of future opportunities for the company.

Companies Expanding International eVTOL CommercializationThe development of eVTOL aircraft is also creating opportunities for companies pursuing commercial air mobility markets outside their home countries. Eve Holding, Inc. (EVEX - Free Report) and EHang Holdings (EH - Free Report) are developing eVTOL aircraft and pursuing commercial applications in international markets.

Eve Holding is developing its eVTOL aircraft and an air mobility ecosystem intended to support commercial operations across different markets.

EHang Holdings develops autonomous eVTOL aircraft for passenger transportation and other applications, providing another approach to commercializing electric vertical aviation internationally.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 52.38% and growth of 15.63%, respectively.

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ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.29X compared with the industry average of 5.67X.

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ACHR Stock Price PerformanceOver the past three months, ACHR shares have risen 12.7% against the industry’s 8.9% fall.

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ACHR’s Zacks RankArcher currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SALINAS, Calif.--(BUSINESS WIRE)--Archer Aviation (NYSE: ACHR) announced today that it plans to conduct public flights of its all-electric Midnight aircraft on Sept. 26–27 at the 2026 California International Air Show in Salinas, California, as part of its 'No Roads' flight tour. For the second year in a row, Midnight is scheduled to fly both days of the air show, joining a lineup that includes the United States Air Force Thunderbirds, Goulian Aerosports, and performances by iconic aircraft inc.

Key Takeaways ACHR is advancing Midnight certification, production and infrastructure for future air taxi operations.ACHR is expanding electric aviation charging infrastructure to support future Midnight operations in Texas.TXT is exploring autonomous flight through the Cessna SkyCourier UX concept and Merlin Pilot software. Archer Aviation, Inc. (ACHR - Free Report) and Textron Inc. (TXT - Free Report) are advancing next-generation aviation technologies as the industry moves toward more electric, autonomous and digitally enabled aircraft. Archer Aviation is developing its Midnight electric vertical takeoff and landing (eVTOL) aircraft and the infrastructure needed for air taxi operations, while Textron has exposure to sustainable aviation through Pipistrel and is exploring autonomous flight technology across its established aircraft platforms.

The aviation industry is evolving beyond conventional aircraft as manufacturers invest in electric propulsion, autonomy, charging infrastructure and advanced flight-control technologies. Developing these capabilities requires coordination across aircraft design, manufacturing, certification, infrastructure and operating systems. Archer Aviation and Textron are approaching this transition from different starting points, but both are investing in technologies intended to expand how advanced aircraft can operate and support future aviation applications.

Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.

The Case for ACHR StockArcher Aviation is developing its Midnight eVTOL aircraft for passenger air taxi operations. The aircraft is designed for short-distance trips and incorporates electric propulsion and flight-control technologies. Archer Aviation is also preparing for commercial deployment by expanding production capabilities, working through aircraft certification and developing the charging and operating infrastructure required to support future air taxi networks.

On Sept. 10, 2026, Archer Aviation, BETA Technologies and Macquarie Capital’s America’s Consortium for Electric Skyways announced plans to expand interoperable electric aviation charging infrastructure in Texas to support TxDOT’s eVTOL Integration Pilot Program operations. The consortium intends to identify locations where charging infrastructure will be needed as electric aircraft operations develop across the Texas Triangle and surrounding communities. The initiative could help Archer Aviation establish infrastructure for future Midnight operations while supporting its broader effort to build scalable air taxi networks across major U.S. markets.

The Case for TXT StockTextron participates in advanced aviation through Textron Aviation and Pipistrel. Its portfolio includes Cessna and Beechcraft aircraft, while Pipistrel develops light aircraft using electric and conventional propulsion. Textron has also been developing hybrid and electric aircraft technologies, including the Nuuva V300, while research activities involving digital flight controls and air-vehicle management systems are being incorporated across the company.

On Sept. 14, 2026, Textron Aviation and Merlin introduced the Cessna SkyCourier UX concept aircraft, combining the FAA-certified SkyCourier platform with Merlin Pilot autonomous-flight software. The concept explores fully autonomous takeoff and landing and potential aircraft configurations designed around cargo capacity rather than an onboard flight crew. The development could help Textron evaluate how autonomy can be integrated into an aircraft already supported by established manufacturing and service infrastructure while broadening its experience with next-generation aircraft technologies and autonomous aviation systems.

How Does the Zacks Consensus Estimate Compare for ACHR & TXT?The Zacks Consensus Estimate for Archer Aviation's 2026 earnings per share (EPS) indicates a fall of 52.38%.

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The Zacks Consensus Estimate for Textron’s 2026 EPS calls for growth of 6.56%.

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Debt Position of ACHR & TXTDebt position is an important financial indicator that reflects a company’s financial stability and ability to manage debt obligations efficiently. Currently, the debt-to-capital ratio of ACHR and TXT is 6.15% and 32.09%, respectively.

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AVAV & TXT’s Price PerformanceOver the past month, ACHR shares have fallen 10.5%, while TXT shares have declined 3.3% compared with the industry’s drop of 7.3%.

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Valuation for ACHR & TXTACHR shares are trading at a trailing 12-month Price/Book (P/B TTM) multiple of 2.18 compared with TXT’s P/B TTM of 1.7.

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Summing UpBoth companies are participating in the evolution of next-generation aviation technologies. Archer Aviation is focused on developing its Midnight electric air taxi, expanding production capabilities and building the charging infrastructure needed for future operations. Textron is advancing aviation technologies through its established aircraft platforms, Pipistrel’s electric aircraft capabilities and initiatives involving autonomous flight systems.

Our choice at the moment is Textron, supported by its stronger earnings growth outlook, more attractive valuation and better recent stock price performance compared with Archer Aviation.

Archer Aviation and Textron each carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Archer Aviation is a company that hopes to be a major player in the air taxi market. The industry is expected to grow fast, but its value still isn't expected to be all that large by the end of the decade.

Consider this: $14.62 is about the price of a decent lunch, or, if you're at the airport, barely enough for a sandwich. It also happens to be Archer Aviation's (ACHR -2.59%) 52-week stock price high.

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Archer now trades for about $5 a share. If you had invested $5,000 in Archer at its high, you'd be looking at about $1,837 today. And if you invest $5,000 in Archer at today's price, there's a chance you'll be looking at a similarly disappointing result.

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Archer, like Joby Aviation, is stuck between a rock and a hard place. It needs to spend aggressively to get its business up and running; at the same time, spending gobs of cash on manufacturing, infrastructure, and certification work has also been testing investors' patience.

In Q2, Archer generated $5 million in revenue. In the same quarter, its cash pile dropped about $215 million. Its net loss was $262 million, which was softened by $14 million of interest income earned on its cash. At this point, Archer is earning three times as much interest income as revenue.

Three years from now, Archer is predicted to generate half a billion dollars in revenue. If today's spending continued, even that enormous leap in revenue wouldn't be enough to plug its cash-burning hole.

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One bright spot for Archer is its recent acquisition of Insitu from Boeing. Insitu's business is already profitable and generates more than $200 million in annual revenue. Assuming the acquisition closes, it would give Archer a strong revenue stream immediately.

However, given the uncertainty around Archer's eVTOL business, I can't say the stock will set you up for life. If the eVTOL business is successful, Archer could become a ten-bagger. However, I still need to see a piloted transition of its Midnight eVTOL before I can feel confident about its passenger air taxi business.

For now, I would wait for more concrete progress before you buy Archer. The eVTOL industry has multitrillion-dollar potential, but that doesn't mean every business within it will make you a millionaire.

The eVTOL sector keeps bleeding out, and Joby, Archer, and EHang are all hovering near 52-week lows with no single catalyst to blame. What happens next depends on a certification outcome that could either reprice the entire thesis overnight or…

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Shares of Joby Aviation (NYSE:JOBY | JOBY Price Prediction) are down 2% to $6.18 in midday Tuesday trading, extending a slide that leaves Joby stock down 53% year to date (YTD). The broader market is softer today too, but nowhere near this pace, with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) down 0.5% to $757.14.

Archer Aviation (NYSE:ACHR) stock is also easing, down 2% to $5.38, with Archer now down 28% YTD and trading below its 50-day moving average of $5.47. Meanwhile, EHang Holdings (NASDAQ:EH) stock is down 1% to $4.45, and EHang is the worst performer of the group as it’s down 66% YTD.

Joby, Archer, and EHang all build electric vertical takeoff and landing (eVTOL) aircraft, and Tuesday’s session reads more like continued drift out of a theme that’s been unwinding for months than a fresh shock. Each name sits close to its 52-week low, with Joby’s low at $6.18, Archer’s at $4.30, and EHang’s at $4.345.

Continued Sector Drift No announcement from Joby, Archer, or EHang accounts for today’s declines. All three are pre-revenue or early-revenue aircraft developers whose value rests on certification timelines and future commercial service rather than on current results, which makes them unusually sensitive to the cost of capital and to investor patience.

The recent overhang on EHang is more concrete. EHang withdrew its full-year 2026 revenue guidance of RMB600 million after a late-June piloted light-sport aircraft accident in China led regulators to slow low-altitude aviation approvals, and the Pomerantz law firm issued an investigation notice on EHang on September 3.

Joby and Archer have leaned into different narratives to defend their names. Archer has bolted on defense exposure through the Halo and Thunder platforms and the pending Wisk, Insitu and SkyGrid acquisition from Boeing (NYSE:BA), while Joby has emphasized certification progress and the Blade passenger business as a way to book revenue before the core air taxi service launches.

Certification Timing and Cash Burn Joby’s August 5 quarterly release showed Q2 2026 revenue of $38.64 million against a $30.38 million consensus, but the core eVTOL air taxi business is still pre-revenue and Blade contributed $36.2 million of the top line. Joby guided second-half 2026 cash usage of $385 million to $415 million against $629.861 million in cash, and reported FAA type-certification progress at 83%/77% on Stage 3 and 20%/10% on Stage 4.

Archer widened its Q2 net loss to $263.2 million, held $1.56 billion in liquidity, and announced a deal to acquire Boeing’s Wisk Aero, Insitu, and SkyGrid businesses in exchange for a strategic Boeing equity stake. Insitu alone is expected to add more than $200 million in annual revenue once the transaction closes by year-end, and Archer’s Q3 2026 adjusted EBITDA is guided to a loss of $170 million to $200 million.

EHang delivered only 36 eVTOL units in Q2 2026 versus 52 a year earlier, and posted revenue of $11.56 million, down 46.6% year over year (YoY). EHang authorized a $30 million ADS repurchase program in June, but the withdrawn guidance has been the more consequential number, and EHang’s 50-day moving average of $5.21 now sits well below its 200-day average of $9.72.

What to Watch Next Joby’s first eIPP flights are targeted for Dallas-Fort Worth in September, and the company is still aiming to carry its first paying passengers this year. The average analyst price target on Joby sits at $10.68, well above the current quote, and Archer and EHang carry comparable targets of $10.61 and $10.19 respectively, so the sell-side view across the group still assumes commercialization actually lands on time.

For Joby, the bull case is that certification is binary and a single approval reprices the whole thesis. The bear side argues that each quarter without eVTOL revenue makes the next capital raise more expensive for shareholders already in the name.

Investors can watch for whether the Dallas-Fort Worth eIPP demonstrations convert to paid service before year-end, and should keep their exposure to pre-revenue eVTOL names small enough that a delayed certification doesn’t wreck the plan (we wrote a free playbook on speculating with just 5% of a portfolio here: Small Stakes, Big Swings).

Contact [email protected] for any questions or corrections.

Key Takeaways ACHR is developing propulsion, flight control software and composites to differentiate its aircraft.ACHR is leveraging established suppliers for components outside its core differentiating technologies.ACHR is using California production lessons to guide the ramp-up of its Georgia manufacturing facility. Archer Aviation Inc. (ACHR - Free Report) is balancing internal technology development with the use of established aerospace suppliers as it works toward scaling aircraft production. The company is focusing its internal efforts on technologies it considers important to aircraft differentiation while relying on external suppliers for other components.

Archer is developing key enabling technologies internally, including electric and hybrid propulsion systems, flight control software and composites. The company aims to leverage the existing aerospace supply base for components that are not considered differentiating technologies. This approach allows Archer to focus its resources on areas that are central to its aircraft platforms while using established suppliers for other requirements.

The strategy is also being applied as Archer expands its manufacturing capabilities. The company is ramping up production and testing across facilities in California and Georgia, with its Silicon Valley “golden manufacturing line” being used for early Midnight builds. Lessons from this initial production process are intended to support the design and ramp-up of the high-volume manufacturing facility in Georgia.

Archer's ability to manage this balance between internal development and external sourcing could become increasingly important as it moves toward commercial aircraft production. Maintaining supplier quality, performance, cost and delivery requirements while scaling its own manufacturing capabilities will be critical to supporting future production. A well-managed component strategy could help Archer expand manufacturing without taking on every element of aircraft production internally.

Companies Strengthening eVTOL Manufacturing CapabilitiesAs eVTOL manufacturers move toward commercial production, balancing internal manufacturing capabilities with supplier expertise and strategic production partnerships is becoming increasingly important. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Eve Holding, Inc. (EVEX - Free Report) are also developing manufacturing capabilities and supplier relationships to support the production of their electric aircraft.

Joby Aviation is expanding its manufacturing capabilities while working with Toyota through a strategic manufacturing alliance focused on commercial production, manufacturing efficiency and production scale-up.

Eve Holding is also progressing toward aircraft production by developing its industrial and manufacturing infrastructure as it advances its eVTOL program toward commercialization.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 52.38% and growth of 15.63%, respectively.

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ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.24X compared with the industry average of 5.72X.

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ACHR Stock Price PerformanceOver the past three months, ACHR shares have risen 0.5% against the industry’s 8.6% fall.

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ACHR’s Zacks RankArcher currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.