Is This Under-the-Radar Air Taxi Stock the Tesla of the Skies

Archer Aviation (NYSE: ACHR) isn’t just building a futuristic flying machine, it’s laying the runway for what could be a trillion-dollar transformation in how the world moves.

At the heart of this vision is Archer’s electric vertical takeoff and landing aircraft, designed to turn congested cityscapes into frictionless aerial highways.

But while the dream sounds like sci-fi, the numbers and strategy tell a far more grounded, and investable, story.

Key Points

• Archer isn’t just an air taxi play but its defense partnerships give it a second, high-margin, recession-resistant revenue stream.

• With $1B in cash and commercial operations launching in the UAE, Archer has the financial strength and momentum to scale.

• Its market cap equals its backlog, but with AI, defense, and mobility upside, a re-rating could send shares much higher.

Air Taxis and Defense

What separates Archer from many of its air mobility peers is its dual-pronged revenue strategy. Most investors see a flying car company and think “urban air taxi.” But Archer’s ambitions are bigger.

Yes, it’s targeting short-hop, high-frequency routes in densely populated areas, a market that could eventually rival ride-hailing in size. But in parallel, it’s quietly building deep roots in the defense sector.

Thanks to strategic partnerships with Anduril Industries, Archer is working on military-grade autonomous systems and AI-enhanced aviation logistics. This gives it access to mission-critical defense budgets that are insulated from economic cycles and typically come with higher margins and longer contract durations.

A Hidden Catalyst

Palantir’s Artificial Intelligence Platform, the same engine that’s driving explosive growth in healthcare, energy, and logistics, is now being integrated into Archer’s aircraft systems.

This isn’t just about smarter route planning but is about building the operating system for the air mobility networks of the future.

Palantir’s government relationships could also open doors to federal aviation initiatives and military contracts, a flywheel effect that could supercharge Archer’s topline faster than the market expects.

Archer Has Deep Pockets

Archer’s balance sheet, as of Q1 2025, shows over $1 billion in cash. That figure alone puts it in the upper echelon of pre-revenue startups, particularly in capital-intensive sectors like aerospace.

Burning through just $113.1 million last quarter on a non-GAAP basis, Archer has a financial runway of over two years before needing to raise another dime. That’s a luxury in today’s market, where venture-stage companies are slashing costs or scrambling for lifelines.

And given that commercial operations are expected to begin in 2025, Archer may never need to dilute shareholders again if early execution goes as planned.

A Mispriced Growth Story

Here’s where the story gets even more compelling. Archer’s market cap sits just above $6.6 billion, almost identical to its current order backlog.

Let’s put some rough numbers to it. Even a conservative 1.5x multiple on Archer’s $6.6 billion order book implies a $17 stock, near where the shares trade now.

But Archer isn’t just an aircraft manufacturer. With AI integration, military applications, and urban infrastructure buildout, it’s positioning more like a next-gen transportation platform company.

If investors begin to re-rate the company as a tech-forward logistics and defense hybrid — which it arguably is, a greater multiple would imply upside to perhaps the mid-$20s.

A Rare Asymmetric Bet

To be clear, the risks here are real. Certification hurdles, regulatory red tape, and the challenge of scaling production could delay revenue or erode margins. But with cash in hand, contracts inked, and a tech-forward strategy that touches both civilian and defense sectors, Archer is one of the few early-stage players in the eVTOL space with real operational and strategic depth.

If you believe that cities will one day buzz with silent, electric aircraft and that autonomy, and AI will be essential to making it work, then Archer Aviation might be one of the most underpriced bets on the board today.