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Should You Buy Archer Aviation Stock While It's Still Generating $0 in Sales?
ACHRArcher Aviation (ACHR) The Motley Fool·2025-01-25 09:20

Company Overview - Archer Aviation is a US-based designer and manufacturer of electric vertical takeoff and landing (eVTOL) aircraft, with its Midnight vehicles gaining attention in the flying taxi space [1] - The company has a market capitalization of approximately 3.8billiondespitegeneratingzerorevenuesincegoingpublicin2021[2]−ArcherAviationispositionedasahigh−risk,speculativeplaywithmassivelong−termpotential,particularlyforrisk−tolerantinvestors[3]MarketandRegulatoryDevelopments−ArcherAviationisawaitingkeyregulatoryapprovalstobegincommercialoperationsforitsMidnightaircraft[4]−ThecompanyexpectstobeginmanufacturingitsMidnightvehiclesatitsGeorgiaplantinearly2025,rampingupto2aircraftpermonthbytheendof2025and650peryearby2030[5]−CEOAdamGoldsteinanticipatescommercialflightstobeginin2025,withagreementsinplaceforpotentiallaunchesintheUnitedArabEmirates,AbuDhabi,andJapan[6]−ThecompanyisoptimisticabouttheUSmarketduetoexpectationsofamorelaxregulatoryenvironmentunderthenewTrumpadministration,withpotentialoperationsatNewarkInternationalandChicagoO′Hareairportsbytheendof2025[7]OrdersandGrowthPotential−ArcherAviationhasover3.8 billion despite generating zero revenue since going public in 2021 [2] - Archer Aviation is positioned as a high-risk, speculative play with massive long-term potential, particularly for risk-tolerant investors [3] Market and Regulatory Developments - Archer Aviation is awaiting key regulatory approvals to begin commercial operations for its Midnight aircraft [4] - The company expects to begin manufacturing its Midnight vehicles at its Georgia plant in early 2025, ramping up to 2 aircraft per month by the end of 2025 and 650 per year by 2030 [5] - CEO Adam Goldstein anticipates commercial flights to begin in 2025, with agreements in place for potential launches in the United Arab Emirates, Abu Dhabi, and Japan [6] - The company is optimistic about the US market due to expectations of a more lax regulatory environment under the new Trump administration, with potential operations at Newark International and Chicago O'Hare airports by the end of 2025 [7] Orders and Growth Potential - Archer Aviation has over 6 billion in orders for its Midnight vehicles, providing a strong growth trajectory despite current zero revenue [8] - The company is expanding into the defense industry through a partnership with Anduril, targeting hybrid-power VTOL craft for US Department of Defense contracts [9] - Anduril's recent 250millionand250 million and 100 million contracts with the DOD highlight the significant long-term opportunity for Archer in the defense sector [9] Strategic Positioning - Archer Aviation is positioning itself as a market-crushing growth stock with opportunities in both commercial flight and defense industries [10] - The company's focus on innovative technology and strategic partnerships makes it a compelling addition for risk-tolerant investors [10]