Archer Aviation races to launch electric air taxis amid financial and regulatory storms
Archer Aviation is forging ahead with its electric air taxi plans, despite facing financial and regulatory hurdles. The company’s stock now trades below its initial public offering price, leaving it with a market value of around $5.5 billion—but no revenue yet. Its flagship aircraft, the Midnight, remains in development while rivals race to secure approvals first.
The Midnight is designed as a four-passenger electric vertical takeoff and landing (eVTOL) aircraft. It aims to cover short urban trips of 20 to 50 miles at speeds up to 150 miles per hour. However, Archer still lacks both commercial revenue and the necessary regulatory sign-off from the Federal Aviation Administration (FAA) to carry paying passengers.
Archer has secured high-profile partnerships to boost its ambitions. Stellantis is assisting with scaling up production of the Midnight. Meanwhile, United Airlines has placed orders for hundreds of the aircraft, targeting busy urban centres like New York City. The company has also been chosen as the official air taxi provider for the 2028 Los Angeles Olympics and is acquiring Hawthorne Municipal Airport in California to support operations.
Internationally, Archer is expanding its reach. Korean Air has signed a memorandum of understanding to explore using its aircraft for South Korea’s urban mobility projects. Saudi Arabia is also collaborating with Archer to introduce its services within the kingdom. Yet, while these deals signal strong interest, Archer’s progress lags behind competitors like Joby Aviation, which is further along in the FAA certification process.
Archer’s future depends on overcoming two major challenges: securing FAA approval and turning partnerships into revenue. The company’s stock performance reflects investor caution, but its deals with airlines, automakers, and governments show confidence in its long-term vision. Without certification, however, the Midnight cannot begin commercial flights.
