Archer Aviation Inc. (ACHR) shares climbed 2.14% to $6.65 in Wednesday's premarket trading, building on a three-session rebound that has lifted the stock 12.6% since May 20. The premarket move follows Tuesday's 2.36% gain on heavy volume of 75.15 million shares, outperforming both the S&P 500 and Nasdaq.
The stock remains well below its 52-week high of $14.62, but investors are focusing on recent milestones in the company's pursuit of electric vertical take-off and landing (eVTOL) aircraft certification. Archer announced earlier this month that it completed Phase 3 of the U.S. Federal Aviation Administration's four-step type-certification process for its Midnight aircraft, a battery-powered eVTOL designed to operate like a helicopter for takeoff and landing but fly like a fixed-wing airplane in cruise.
CEO Adam Goldstein described the quarter as a "banner" period, emphasizing that Archer is "far more than an air taxi company." Goldstein highlighted the company's expanding work in defense, artificial intelligence, and passenger flight operations. The company is eyeing Hawthorne Airport in Los Angeles, less than three miles from Los Angeles International Airport, as a potential hub for its planned air-taxi network and AI testing site.
Federal support for the sector is growing. The FAA and U.S. Department of Transportation selected eight projects for the eVTOL Integration Pilot Program (eIPP), which aims to test advanced air mobility in real-world conditions, with operations slated to begin by summer 2026. Archer is a partner on projects in New York/New Jersey, Texas, and Florida. Sector peers Joby Aviation and BETA Technologies are also involved in multiple eIPP projects. FAA Deputy Administrator Chris Rocheleau said the program will help regulators "safely and efficiently integrate" these aircraft into U.S. airspace.
United Airlines CFO Michael Leskinen expressed confidence in Archer's progress, stating that the company's advances "validate our conviction" in eVTOLs as a future component of air traffic technology. United is a strategic partner and investor in Archer.
However, the competitive landscape remains contentious. Joby Aviation filed a lawsuit against Archer last year, alleging misappropriation of trade secrets. Archer countersued, raising concerns about Joby's ties to China. Both companies deny the other's allegations, and the litigation continues.
Financially, Archer remains in a development-stage profile. For the first quarter, the company reported revenue of $1.6 million, a net loss of $217.7 million, and an adjusted EBITDA loss of $172.5 million. Adjusted EBITDA, a non-standard metric often used by unprofitable companies, excludes certain items. Archer ended March with approximately $1.78 billion in cash, cash equivalents, and short-term investments.
The company has been transparent about risks. In its latest filing, Archer warned that it has incurred losses since inception, generated minimal revenue from its planned business, and expects losses and costs to continue rising. It also flagged uncertainties around certification timelines, manufacturing ramp-up costs, and operational execution.
For now, the stock is driven by certification milestones and regulatory progress rather than earnings. Positive developments in FAA testing, federal pilot programs, or operational details could provide further upside. Conversely, delays in certification, accelerating cash burn, or adverse litigation outcomes could weigh on the stock.
