Recently, both leading electric air taxi companies have experienced significant stock declines, presenting potential opportunities for long-term investors.
Flying cars, long treated as a joke—often claimed to be “just around the corner”—are finally being realized through electric vertical take-off and landing (eVTOL) aircraft. Although these leading firms have faced stock price drops this past month, they’ve been making strides toward getting their aircraft to market.
This isn’t a quick trade for anyone looking to make a fast profit. However, for those ready to weather some ups and downs, the recent downturn could be seen as a buying opportunity.
1. Certification readjustments
Joby Aviation has positioned itself as a top contender in the race to introduce electric air taxis, currently wrapping up its Federal Aviation Administration (FAA) certification. They’ve begun power-on tests of their first compliant aircraft, with expectations that FAA test pilots will be flying it by early next year—a crucial step toward commercial operation around 2026.
Despite the stock dropping roughly 35% from its high of nearly $21, bringing its market cap to around $12.8 billion, the company’s partnerships indicate that savvy investors see potential here.
Toyota has funneled nearly $900 million into Joby to support its manufacturing expansion. Additionally, Nvidia is collaborating with Joby on autonomous flight systems, making Joby their exclusive partner in this sector. Uber Technologies, which sold its eVTOL division to Joby, continues to play a supportive role, keen to incorporate air taxis into its service network.
This year alone, Joby has conducted over 600 flights, including a demonstration project at Expo 2025 in Osaka, Japan. They recently announced plans to sell a $250 million aircraft in Kazakhstan, reflecting a growing international demand even before their certification is finalized.
2. Infrastructure significance
Archer Aviation takes a somewhat different route by focusing on selling aircraft to airlines while developing the necessary infrastructure for urban air mobility. Archer’s stock has faced an even sharper decline than Joby, falling about 34% recently and trading around $7.54, significantly below its 52-week peak of $14.6.
Yet Archer has been crafting a compelling narrative. They recently acquired Hawthorne Airport near Los Angeles for $126 million, establishing a key hub close to LAX and SoFi Stadium. As the Olympics approach Los Angeles in 2028, Archer aims to become the go-to air taxi provider in this bustling metropolis.
With over $2 billion in liquidity, Archer boasts a solid financial position, ensuring they have the runway to navigate through the coming years. They’ve also forged crucial partnerships with Stellantis for manufacturing and United Airlines for aircraft contracts in Asia and the Middle East.
Despite their current stock slump, Wall Street remains optimistic. Analysts have set a price target of about $12.4, suggesting a potential upside of 70% if their predictions hold. Prominent investors like Cathie Wood’s Ark Invest are buying into these stocks during the downturn, pointing to a belief that the stock price drop might actually present a buying opportunity.
The long view
Both Archer and Joby aren’t tailored for those seeking quick returns. They’re investing heavily in achieving certification and scaling their operations before seeing profits. The eVTOL market does carry real risks, including possible regulatory delays and manufacturing issues, as well as the chance that consumers may be slow to adopt this new mode of transport.
Nevertheless, the potential for substantial returns exists. Urban air mobility could blossom into a multi-billion dollar industry by the end of this decade, with these companies positioned well to lead the charge thanks to their partnerships, funding, and technological advancements.
Stocks that seem tumultuous in the short term often yield significant long-term gains. For those prepared to take a patient approach, the recent stock declines may be too good an opportunity to pass up.
