Archer Aviation (NYSE: ACHR ) is stealthily setting itself up to be this underestimated leader of electric air taxis. I think the market is still wrong in valuing Archer as a long-shot number two inHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: ...

Group 1 - Uber will test using drones for Uber Eats deliveries in select U.S. markets by the end of this year, in partnership with Israeli startup Flytrex, which includes a small investment from Uber [1] - The partnership aligns with Uber's strategy of re-engaging with technologies previously developed in-house, including collaborations with autonomous vehicle companies like Waymo and plans for electric air taxis [2] - Uber previously trialed drone deliveries in 2019 but abandoned the initiative due to regulatory constraints, later selling its "Elevate" aviation division to Joby; the current regulatory environment is becoming more favorable for aerial delivery [3] Group 2 - Flytrex has completed over 200,000 deliveries across the U.S. and also collaborates with Uber Eats competitor DoorDash, indicating a growing trend in aerial delivery services [3]

Group 1 - Joby Aviation claims a competitive advantage in the electric air taxi market through vertical integration, controlling the design and manufacturing of its aircraft in-house [1][2] - The company has completed over 40,000 miles of flight testing, with nearly 600 flights in 2025, and is in the fourth of five FAA certification stages, positioning it ahead of competitors [3] - Joby's partnerships with Toyota, Delta Air Lines, and Uber enhance its operational capabilities and market demand, making its integrated model difficult for rivals to replicate [3][4] Group 2 - The vertical integration strategy not only protects Joby from supply chain disruptions but also allows it to build proprietary intellectual property [3] - As the electric air taxi industry evolves, Joby believes its integrated model could serve as a valuation floor, providing stability amid competition [4]

Core Insights - Uber is partnering with Joby Aviation to integrate Blade's helicopter service into the Uber app, aiming to offer urban air travel options as early as next year [2][3][6] Company Developments - Joby Aviation acquired Blade Air Mobility for $125 million, gaining access to an established network of terminals, which will facilitate its entry into urban markets [3] - Joby aims to launch its all-electric vertical takeoff and landing (eVTOL) aircraft in key urban areas, with a focus on reducing traffic congestion and providing faster commutes [5][6] Market Performance - Joby Aviation's stock experienced volatility, initially rising in pre-market trading but settling to a 1% increase by midday, while Uber's stock fell over 1% [9] - In Q2 2025, Joby reported an earnings per share (EPS) of -$0.24, missing estimates, and a revenue drop of 94.6% year-over-year to $0.02 million [10] - Conversely, Uber's Q2 2025 earnings exceeded expectations, with revenue of $12.65 billion, an 18% year-over-year growth [10]

Core Viewpoint - The electric air taxi industry, led by companies like Joby Aviation, is experiencing significant investor interest due to its potential to disrupt urban transportation, despite Joby currently generating no revenue and facing high cash burn rates [1][5][12]. Company Overview - Joby Aviation is a leader in the electric vertical takeoff and landing (eVTOL) market, with stock prices rising over 100% in 2025, recently surpassing an all-time high of $17.50 per share [1][2]. - The company is working with major partners like Delta Air Lines and Uber Technologies to develop point-to-point air taxi networks in cities such as Los Angeles, New York, and Dubai [4][5]. Market Potential - The potential market for electric air taxis is substantial, with around 100 metropolitan areas globally having populations over 5 million, many of which suffer from severe traffic congestion [11]. - Joby Aviation's market capitalization is approaching $15 billion, reflecting investor excitement about the future demand for air taxi services, despite the company currently generating zero revenue [5][12]. Production and Financials - Joby Aviation is heavily investing in research and development, spending over $135 million in the last quarter alone, while also facing a negative free cash flow of nearly $500 million over the past year [8][9]. - The company has a long production timeline, with plans to ramp up manufacturing after receiving FAA approval, but currently can only produce 24 electric air taxis per year, indicating a slow scale-up [6][7]. Challenges and Risks - Joby Aviation's business model is characterized by high cash burn and low margins, making it challenging to achieve profitability even if revenue grows significantly in the future [12][13]. - The company will likely need to continue fundraising to support its operations, with around $1 billion in cash available, including commitments from Toyota [9][12].