Should You Buy Archer Aviation Stock While It's Below $18?

Core Viewpoint - Archer Aviation is positioned for significant growth in the eVTOL aircraft market, with a strong order backlog and ambitious production plans, despite current financial losses and speculative stock status [1][11][14] Group 1: Company Overview - Archer Aviation's stock has increased over 150% in the past year, reflecting market confidence as it approaches full approval for U.S. air taxi operations [1] - The company's Midnight eVTOL aircraft is designed for urban air taxi services, capable of carrying one pilot and four passengers, with a range of 100 miles and a maximum speed of 150 miles per hour [4] - Archer has secured significant orders from major customers, including United Airlines (200 aircraft), Future Flight Global (116 aircraft), and Soracle (100 aircraft), among others [5][6] Group 2: Growth Potential - Archer aims to produce 10 aircraft in 2025, 48 in 2026, 252 in 2027, and 650 in 2028, supported by investments from Stellantis and partnerships with companies like Palantir [9] - The company has an order backlog of approximately $6 billion, indicating strong future demand for its eVTOL aircraft [10] - Analysts project Archer's revenue to grow from $13 million in 2025 to $437 million in 2027, driven by its expansion plans and government contracts [9] Group 3: Financial Considerations - Despite its growth potential, Archer is expected to incur losses exceeding $500 million annually through 2027, necessitating share dilution and increased debt [11] - The company's market capitalization stands at $7.7 billion, trading at nearly 18 times its projected revenue for 2027, which raises concerns about its current valuations [13] - Archer's outstanding shares have increased by 127% over the past three years, reflecting its need for capital to support growth [12]