Is Archer Aviation Stock a Buy Right Now?

Archer Aviation (NYSE: ACHR) is a pioneering developer of electric vertical takeoff and landing (eVTOL) aircraft. Its flagship aircraft, called Midnight, is designed to carry four passengers, fly about 100 miles on a single charge, and reach speeds of up to 150 miles per hour.

Since going public in 2021, Archer Aviation stock has lost about 38% of its value, badly lagging the broader market. It now trades at about $6, down roughly 25% in 2026.

With the company making progress through the Federal Aviation Administration's (FAA) regulatory process, and with operations expected in 2026, is Archer a no-brainer at this price?

The bull case is taking flight, but the business hasn't taken off yet

The bullish case for Archer Aviation is simply this: The company has a marquee list of partners, a backlog of $6 billion, a robust balance sheet with about $1.8 billion in cash and equivalents, and a friend in the White House who wants to advance eVTOL aircraft for (probably) military purposes.

Archer's strategic partnerships are, indeed, impressive. For example, United Airlines (NASDAQ: UAL) is currently partnering with Archer to establish an air taxi route between Manhattan and nearby airports, while Abu Dhabi Aviation has signed on to be Archer's operating partner in Abu Dhabi. Stellantis is Archer's manufacturing arm, while Nvidia and Palantir Technologies are supplying powerful technology for Archer's Midnight craft.

Image source: Archer Aviation.

However, Archer's most important supporter is perhaps the U.S. government. Under the White House's eVTOL Integration Pilot Program (eIPP), Archer can conduct early trial flights of Midnight, which can greatly accelerate its path to commercialization. The program could see Archer operating air taxi services in key U.S. cities in the latter half of 2026, a huge advance that could finally help the company generate revenue.

Still, the gap between Archer's ambition and its current reality remains wide. Archer burns about $500 million to $700 million in cash each year, it doesn't have a commercial license, and it trails Joby Aviation on the regulatory timeline. It has manufactured a total of two eVTOLs, which is still far behind the estimated 6,000 aircraft that CEO Adam Goldstein once predicted it would have by 2030.

All this makes its current $4.6 billion market cap a lot harder to swallow. True, Archer does have partners in the defense industry -- like Anduril -- which could open up huge earnings potential, especially if Archer landed a deal with the U.S. government. But this, like almost everything else with Archer, is still speculative.

As such, Archer doesn't seem like a strong buy even at today's price of about $6 a pop. It is a play on a not-yet-existent industry whose true future market value is hard to gauge. Only aggressive investors will likely want to consider Archer at this point.

Steven Porrello has positions in Archer Aviation, Joby Aviation, and Nvidia. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.