Archer Aviation Inc. (NYSE: ACHR) closed the holiday-shortened week on a positive note, with shares rising 7.1% to $6.81 from the prior Friday's close of $6.36. The stock's upward move came during a week that saw U.S. markets closed for Memorial Day, limiting trading activity. Volume on Friday reached 56.89 million shares, reflecting sustained investor interest in the electric vertical takeoff and landing (eVTOL) developer.
FAA Certification Progress
Archer achieved a significant regulatory milestone this month, completing Phase 3 of the Federal Aviation Administration's type certification process for eVTOL aircraft. The company claims to be the first in the sector to reach this stage. With Phase 3 behind it, Archer now moves into Phase 4, where its Midnight aircraft must demonstrate compliance with FAA airworthiness standards through formal testing and analysis. This progress is critical as the company's valuation increasingly hinges on certification achievements, flight test results, and cash runway management rather than revenue generation.
Financial Performance and Outlook
Archer reported a first-quarter net loss of $217.7 million, widening from $93.4 million in the same period last year. Research and development expenses surged 65.6% to $171.7 million, reflecting the heavy investment required to bring the Midnight aircraft to market. As of March 31, the company held $951.1 million in cash and cash equivalents, along with $824.8 million in short-term investments, providing a substantial liquidity buffer. Adjusted EBITDA for the quarter came in at a loss of $172.5 million, and Archer guided for a second-quarter adjusted EBITDA loss of $170 million to $200 million.
CEO Adam Goldstein described the quarter as "another banner quarter" for Archer, emphasizing that the company is "far more than an air taxi company." He highlighted defense applications and aviation software as additional growth avenues beyond urban air mobility.
Market Context and Competition
Archer plans to initiate U.S. operations this year under the White House's eVTOL Integration Pilot Program (eIPP), positioning itself for the 2028 Los Angeles Olympics. The company's timeline faces scrutiny, with any delays in certification, higher-than-expected spending, infrastructure bottlenecks, or the need for additional capital posing risks to the stock. Archer acknowledged these uncertainties in its latest quarterly filing, noting there is no guarantee it will meet its business targets or secure financing on favorable terms.
Wall Street remains cautiously optimistic. Canaccord Genuity lowered its price target on Archer to $12 from $13 but maintained a Buy rating. MarketBeat reports eight analysts covering the stock with a consensus "Moderate Buy" rating and an average price target of $11.83, well above Friday's close.
Competitors are also advancing. Joby Aviation was selected for U.S. air-taxi operations supported by the White House across 10 states and expects its first FAA-conforming aircraft to fly soon for type inspection authorization. Eve Holding, backed by Embraer, remains in development and does not anticipate significant revenue until its aircraft is complete.
Looking Ahead
This week, with no major company events scheduled, Archer's share price may move on sentiment, analyst commentary, or news regarding certification and early U.S. route development. The key question for investors is whether the FAA milestone can shift focus away from the company's cash burn rate. For now, the trade is less about the size of the air taxi market and more about Archer's ability to consistently deliver milestones that keep investors aligned with its timeline.
