If you build it, they will come -- but in aerospace, you need more than vision. You need capital, regulatory traction, and global partnerships just to reach the runway.
Critics of Archer Aviation (ACHR 3.73%) seem to have missed this fundamental truth about how transformative technologies reach the market. The short thesis fixates on whether the company can meet its stated production and certification targets, as if timeline adjustments in a complex regulatory environment somehow invalidate the entire enterprise.
Here's what the skeptics are missing: Archer's stock trades around $11.40 per share, as of this writing (July 15), supporting a $6.3 billion market cap for a pre-revenue company. That's not irrational exuberance -- it's the market pricing in the systematic de-risking of what was once considered science fiction. Nearly four years after going public, the company has assembled one of the strongest balance sheets in the advanced air mobility industry, with over $1.4 billion in cash and committed capital following its recent $850 million strategic funding round.
Image source: Getty Images.
Here's why Archer's "Field of Dreams" business model -- if you build it, they will come -- is not only succeeding, but creating value ahead of schedule.
Regulatory momentum meets execution reality
The catalyst? A White House executive order establishing an electric vertical takeoff and landing (eVTOL) Integration Pilot Program designed to accelerate deployment of electric air taxis in the U.S. This wasn't random government largesse -- it followed years of patient coalition-building by Archer and its peers.
The company's CEO, Adam Goldstein, joined Transportation Secretary Sean Duffy at the Paris Air Show to announce a five-country alliance including the U.S., U.K., Australia, Canada, and New Zealand that will streamline global certification. Once Archer obtains FAA-type certification -- targeted for late 2025 -- this alliance creates a smooth pathway to deploy its Midnight aircraft internationally.
Critics highlight delays in piloted flight testing. But in July 2025, test flights officially began in Abu Dhabi, validating the Midnight aircraft in real-world conditions. Production scaling targets of just two aircraft per month by year-end underscore the methodical approach Archer is taking.
While some view these as execution risks, patient investors recognize that rushing aviation certification would be far riskier. Archer has already secured Part 135 operating authority and Part 145 maintenance certification, with flight simulation (Part 142) pending. That's tangible regulatory progress that positions the company for success, whenever the final approval arrives.
Building the future, one partnership at a time
Abu Dhabi isn't a marketing stunt. It's a crucible. The region's extreme conditions of heat, humidity, and dust will stress-test Midnight's systems far beyond what it might encounter in Los Angeles or New York.
Abu Dhabi Aviation, the Middle East's largest commercial helicopter operator, has signed on as Archer's first Launch Edition customer, with Ethiopian Airlines also joining the program. This partnership brings operational expertise that will accelerate the learning curve across multiple continents.
While critics point to quarterly losses as evidence of unsustainability, Archer's Q1 2025 results beat analyst expectations on the bottom line, demonstrating disciplined financial management. They're measuring tomorrow's transportation revolution by yesterday's financial metrics.
That burn rate funds partnerships with Palantir Technologies for artificial intelligence (AI)-driven aviation software, collaborations with Anduril for defense applications, and manufacturing facilities in both Silicon Valley and Georgia. Archer's order book has swelled to nearly $6 billion, including agreements with United Airlines and Southwest Airlines, as well as its designation as the official air taxi provider for the 2028 Los Angeles Olympics.
The scaling challenge is real but addressable
Scaling production from prototype to commercial volume presents significant hurdles -- establishing robust supply chains, optimizing manufacturing processes, and ensuring consistent quality for an entirely new category of aircraft.
This isn't SaaS. It's aircraft. Archer's collaboration with Stellantis provides valuable automotive manufacturing expertise, with an additional $400 million contract manufacturing agreement to help scale manufacturing. This is precisely why the company's methodical approach matters: build awareness, strengthen the balance sheet, develop the technology, establish regulatory frameworks, then scale.
The competitive landscape is fierce. Joby Aviation, backed by Toyota with $500 million in funding, is pursuing a similar certification timeline. Beta Technologies focuses on cargo applications.
Each competitor has unique strengths, but Archer differentiates itself through its targeted Launch Edition program for early international deployment, its unique 12-tilt-6 aircraft configuration, and its diversified partnership network spanning commercial aviation, defense, and global infrastructure providers like Jetex.
Market acceptance remains the ultimate test
While technological and regulatory pathways are clearing, widespread public acceptance isn't guaranteed. Initial concerns about noise, safety perception, and affordability could impact adoption rates. Archer's strategy of focusing first on premium routes between airports and city centers, leveraging partnerships with established airlines, aims to build confidence before broader market penetration.
The company must deliver a compelling value proposition at scale -- not just a novelty for the wealthy. This is the real test of the company's business model and unique transportation platform, not if Archer can meet completely arbitrary internal production targets during its initial ramp.
Why critics are wrong about Archer's progress
Consider that just one year ago, most investors couldn't define "eVTOL" without an internet search. Today, the term shows up in White House executive orders and international regulatory frameworks. That's not hype. That's infrastructure being built.
Critics who fixate on production delays are missing the broader shift. Aerospace doesn't move on quarterly timelines. What's unfolding isn't a missed deadline. It's the emergence of a new category of transportation.
The market isn't betting on Archer to beat near-term earnings. It's betting on the convergence of technology, policy, and environmental necessity to drive adoption. That future is coming. Even if it takes a few extra quarters, it still changes everything.
