The eVTOL industry is rapidly growing, with companies like Archer Aviation and Joby Aviation leading the way. Despite not yet receiving regulatory approval for their eVTOL aircraft, there is optimism that this could change by 2026.
Both Archer and Joby have seen significant stock price increases, with Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) up around 330% since the beginning of 2023. However, neither company has started commercial air taxi operations, and there are risks associated with investing in these stocks.
Certifying eVTOLs for air taxi services is a complex process, but both Archer and Joby are making progress with the Federal Aviation Administration (FAA). Certification is expected soon, and there is hope that both eVTOLs will be operational next year. Initial operations may start outside of North America, particularly in the United Arab Emirates, where approval may come faster.
Investors are keen to see how well the eVTOL business performs, given the uncertainties surrounding demand, profitability, and scalability. Joby has generated revenue from Blade Air Mobility, but the focus remains on the potential of the eVTOL business for both companies.
There is a difference in valuation between Archer and Joby, with Joby having a higher market cap. Despite being the target of short reports, Archer’s more modest valuation may provide a greater margin of safety for investors. It’s essential to consider the risks associated with investing in eVTOL stocks, as the industry is still evolving.
In conclusion, while both Archer Aviation and Joby Aviation hold promise in the eVTOL market, investors should carefully assess the risks and potential returns before making investment decisions. The industry’s future is uncertain, but with proper due diligence, there may be opportunities for growth in the eVTOL sector.
