Helicopters are one of transportation's most versatile inventions. They can take off and land vertically, they can hover in place, they can operate without runways, and they can reach remote areas, all of which make them indispensable for medical, military, and rescue purposes.
They're also noisy, expensive, and not very fuel-efficient. Now, if only we had an aircraft like a helicopter that ran electrically and was a skosh more practical for everyday purposes.
Well, that, in a sense, is what aviation start-up Archer Aviation (ACHR +1.54%) is trying to accomplish.
An Archer Aviation Midnight aircraft. Image source: Archer Aviation.
Its flagship craft, Midnight, is a pilot-plus-four-passenger electric vertical takeoff and landing (eVTOL) aircraft, which can taxi passengers on short hops in urban settings.
The company's main selling proposition isn't to replace helicopters, but to give travelers a quicker route through the air when other forms of transportation, like cars or buses, are moving too slowly. The company may also sell its aircraft for commercial and defense purposes.
NYSE: ACHR
Key Data Points
Archer Aviation, which currently trades around $9, does not yet have FAA certification for its Midnight design. Without that approval, it cannot operate the craft commercially. Recent federal initiatives could help it progress substantially, though it's not clear when, if ever, the FAA will sign off.
ACHR Cash and Short Term Investments (Quarterly) data by YCharts
As a result, Archer isn't making revenue yet and is burning through its cash. And despite a flurry of good news in 2025 -- including being named the official air taxi provider of the 2028 Olympics in Los Angeles -- the stock is still trading about 25% lower year over year as I write this.
For investors with a long time horizon, who believe, as Morgan Stanley estimates, that the eVTOL market could be worth trillions, a sizable position at today's price could turn into a sum of seven figures. Just know, however, what you're buying -- a company that hasn't proven its technology will scale -- and size your position according to your preferred risk tolerance. There's no guarantee this stock is your ticket to millionaire status.
