The low-altitude economy is on the verge of rocketing higher over the next few decades. Bank of America sees the global adoption of electric vehicle take-off and landing (eVTOL) aircraft to increase by 62% by 2030.
While Joby Aviation is one way to profit from this opportunity, it's worth noting that Cathie Wood of Ark Invest has placed her bet on Archer Aviation (ACHR 1.21%) for the Ark Innovation ETF, which holds almost 18 million shares. There's one reason that may explain why Wood is bullish, and it's also why I hold shares -- and that's a steady flow of positive developments in the past year that position Archer to be a leader in the air taxi market.
The Midnight model eVTOL aircraft. Image source: Archer Aviation.
Why buy Archer Aviation stock
Over the past year, there have been a number of announcements that show the company progressing toward receiving the required certifications and launching commercial operations. This has had a significant impact on the stock price, which has doubled over the past year despite the company not generating significant revenue yet.
Archer has previously announced partnerships with United Airlines and Southwest Airlines to operate air taxi networks across major cities in the U.S. It also has financial backing from Stellantis and other investors as it works toward its goal of manufacturing 50 aircraft per year. In its second-quarter earnings report, Archer reported there were six Midnight aircraft in different production stages, with three in final assembly at its Georgia and Silicon Valley facilities.
In June, Archer, along with the Federal Aviation Administration and the U.S. Department of Transportation, announced an alliance with the United Kingdom, Australia, Canada, and New Zealand in streamlining the certification and commercial launch of eVTOL aircraft.
Finally, Archer Aviation was recently named the official air taxi service for the 2028 Olympic Games in Los Angeles, which will be valuable marketing in demonstrating its capabilities. Given these developments, Archer Aviation is a potential breakout growth stock to watch over the next year.
