1 Magnificent Aviation Stock Down 24% to Buy and Hold Forever

Core Viewpoint - Archer Aviation is considered a promising long-term investment despite its current challenges and stock volatility [1][2]. Company Overview - Archer Aviation specializes in building electric vertical take-off and landing (eVTOL) aircraft and went public through a SPAC merger on September 17, 2021 [1]. - The company's stock initially opened at $9.40 but fell to an all-time low of $1.63 by December 27, 2022, due to missed pre-merger estimates and rising interest rates [1]. Business Developments - Archer's business stabilized after delivering its first aircraft and securing new partnerships, with its stock reaching a record high of $13.30 on May 16, 2025, before pulling back about 24% [2]. - The Midnight eVTOL aircraft can carry one pilot and four passengers, travel up to 100 miles on a single charge, and fly at a maximum speed of 150 miles per hour, positioning it as a cost-effective and environmentally friendly alternative to traditional helicopters [4]. Customer Base and Contracts - Major commercial customers include United Airlines (200 aircraft), Future Flight Global (116 aircraft), and Soracle (100 aircraft), along with additional deals with Ethiopian Airlines and Abu Dhabi Aviation [5]. - Archer holds contracts worth up to $142 million with the U.S. Department of Defense and is collaborating with Stellantis to produce branded eVTOLs [6]. Production and Certification - Archer has not yet generated significant revenue, making it difficult to value the stock [8]. - The company is in the fourth phase of the FAA's five-phase certification process and expects to complete certification this year, which is crucial for ramping up deliveries and starting U.S. air taxi services by the end of 2025 [9][10]. Future Production Goals - Archer aims to increase annual production to 10 aircraft in 2025, 48 in 2026, 252 in 2027, and 650 in 2028, supported by Stellantis [11]. - By 2028, Archer's Midnight aircraft is expected to have an early mover's advantage in the air taxi market, having been selected as the official air taxi provider for the Los Angeles Olympics [12]. Revenue Projections - Analysts project Archer's annual revenue to rise from $13 million in 2025 to $437 million in 2027 if production ramps up successfully [13]. - The eVTOL market is anticipated to grow at a CAGR of 35.3% from 2024 to 2030 and 27.6% from 2031 to 2035, indicating significant potential for Archer [14]. Investment Outlook - Despite being a risky and speculative stock, Archer is viewed as a great long-term investment opportunity, especially if it can maintain its position in the growing eVTOL market [15].