Archer Aviation is gaining traction in both stock performance and the wider electric air taxi space. Its stock has rebounded in 2026, supported by strategic alliances, defense contracts, and government pilot programs, while electric air taxi momentum is growing through regulatory shifts and commercial momentum. Read on for a clear snapshot of what’s happening today.
Stock Performance: From Sinking in 2025 to Surging in 2026
Archer’s stock slumped nearly 23% in 2025, weighed down by heavy losses, certification uncertainty, critical short reports, and rising investor concerns over dilution, particularly after its Hawthorne Airport acquisition . Yet 2026 has brought renewed momentum. Archer’s share price has climbed nearly 18% year-to-date—helped by defense-sector investor enthusiasm and optimism around key milestones .
Still, volatility persists. On January 13, 2026, shares dropped 4.4% despite the high-profile Nvidia partnership and ARK Invest’s support . Just days later, however, the stock rebounded 3–4% with unusual call option activity and a Buy rating from Needham, pegging Archer’s potential at $10 .
Strategic Partnerships and Diversified Market Approaches
Archer is not just mired in defense — though that remains a strong short-term driver. The company signed Air Force contracts worth over $142 million and collaborated with Anduril on hybrid-powered vehicles, signaling growing military interest .
At the same time, Archer is advancing the commercial side. It joined the White House’s eVTOL Integration Pilot Program (eIPP) to pilot the Midnight aircraft in major U.S. cities—including an exclusive bid in Huntington Beach aimed at connecting LA and serving as the official air taxi provider for the 2028 Olympics . This move dovetails with the Department of Transportation’s broader Advanced Air Mobility (AAM) National Strategy .
Internationally, Archer is gaining traction too, with partnerships spanning Serbia, Saudi Arabia (via GACA), and the UAE—where it flew its Midnight aircraft under challenging environmental conditions and signed infrastructure agreements with Jetex .
Infrastructure & Manufacturing: From Plans to Production
Archer’s manufacturing ramp-up is real. Its Covington, Georgia facility, built with Stellantis, is live and targeting two aircraft per month by late 2025—with long-term capacity capped at 650 units annually by 2030 . Stellantis alone committed up to $400 million to scale operations .
This capability underpins bullish projections—analysts estimate revenues could jump from around $32 million in 2026 to $305 million in 2027 as scale hits home .
Regulatory Landscape: Certification Moves—and Delays
Progress in regulation is mixed. Archer has secured several FAA approvals, including maintenance, repair, pilot training (Part 141), and operational (Part 135) certifications . Yet full type certification for the Midnight aircraft remains pending. Analysts place that milestone around 2028, though select pilot programs under eIPP may advance commercial testing sooner .
Failures, like its no-show at the Dubai Airshow, and Joby Aviation’s competing demo weighed heavily in 2025 . That said, Archer’s eIPP engagement may help bridge gaps between regulatory progress and commercial operations .
AI Integration & Investor Signals
Archer is embracing AI in a big way. A collaboration with Nvidia brings IGX Thor AI systems to its aircraft, boosting safety, autonomy-readiness, and airspace integration. The Hawthorne Airport hub in LA will serve as a testing ground .
Institutional backers paint another bright spot. ARK Invest has signaled its belief in Archer’s long-term disruption potential through strategic investment . Meanwhile, defense interest continues to buoy sentiment, amid broader investor appetite for defense-tech equities .
What This Means for Investors Today
Archer Aviation presents a vivid case of high risk, high potential. Short-term success likely lies in defense contract execution and eVTOL pilot programs. The AI and manufacturing expansions give it infrastructure that rivals can’t easily replicate.
That said, full commercial rollout still hinges on FAA certification. If Archer masters that by 2028, the payoff could be substantial. Yet delays, competition, and capital burn remain looming concerns.
In Summary
Archer’s stock and trajectory are held aloft by:
- A bounce-back in 2026 driven by defense contracts and investor sentiment
- Manufacturing scale support from Stellantis, enabling sharp revenue growth projections
- Strategic partnerships with governments and international players, positioning global deployment ahead
- Inclusion in federal eVTOL pilot programs as part of broader AAM strategy
- Integration of AI systems, boosting technological edge and investor credibility
- Regulatory progress with FAA certifications, although full type approval remains a major unknown
These combined forces suggest Archer is no longer just a low-altitude bet — it’s steering toward lift-off. That said, it remains speculative and dependent on execution.
FAQs
What’s driving Archer’s recent stock rebound?
Momentum is powered by $142M+ in defense contracts, institutional backing from ARK Invest, bio-tech/defense equity enthusiasm, and pilot programs like eIPP giving a clearer path forward .
Why is Archer partnering with Nvidia?
To integrate advanced AI systems into its aircraft for enhanced safety, autonomy, and operational efficiency—the LA Hawthorne hub is set as the testing ground for these capabilities .
What’s the status of FAA certification for Midnight?
Archer holds several certifications (Part 135, 141, maintenance). However, type certification is still pending, with forecasts placing it around 2028—though pilot programs may provide an early window for commercial trials .
How big could Archer’s manufacturing get?
Its Covington facility, built with Stellantis, is operational and slated for two aircraft a month by late 2025. Long-term plans target up to 650 units annually by 2030, backed by a $400M scaling commitment .
What markets is Archer targeting?
Domestically, it’s pursuing eVTOL pilots in cities across California, Texas, Florida, Georgia, and New York, including the exclusive bid at Huntington Beach serving LA and the 2028 Olympics . Internationally, it’s engaging partners in Serbia, Saudi Arabia, and the UAE .
Are defense applications more important than commercial?
In the short term, yes—defense contracts are generating real revenue. But long-term impact hinges on commercial air taxi operations via regulatory certification and commercial rollout .
Archer’s journey from prototype to operational air taxi is still unfolding—but the runway is forming.