Archer Aviation (NYSE: ACHR) is a U.S.-based designer and manufacturer of electric vertical takeoff and landing (eVTOL) aircraft. The company's Midnight vehicles stand out as an entry in the flying taxi space, and have recently been attracting attention from tech enthusiasts and investors alike.
Even after a recent pullback for the company's share price, Archer stock is still up 74% over the last year. Thanks to the share price run-up over the stretch and new stock offered to raise funds, the company now has a market capitalization of roughly $3.8 billion. All the while, Archer hasn't generated a single dollar in revenue. It also hasn't generated a single dollar in sales since going public through a merger with a special purpose acquisition company in 2021. Zero. Zip. Nada.
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But while the company has generated exactly $0 in sales in its history as a publicly traded company, it has the potential to be one of this decade's most explosive stocks. If you're a risk-tolerant investor seeking innovative technology plays with massive long-term potential, read on to see why Archer Aviation stock is a great buy for 2025 and beyond.
Archer Aviation stock looks ready for takeoff
As a pioneering player in an emerging product category, Archer Aviation has a lot of proving to do. It also has to receive key regulatory approvals before it can even begin commercial operations for its Midnight aircraft. But while the stock is undoubtedly a high-risk, speculative play, things seem to be moving in the right direction for the company -- and at an accelerating pace.
It looks like 2025 is shaping up to be a big year for Archer Aviation. The company says that its Georgia manufacturing plant will begin manufacturing its Midnight flying electric vehicles at the beginning of the year. Archer says that the facility will ramp up to producing two aircraft per month by the end of this year. By the end of 2030, the company expects to be producing 650 craft per year.
Meanwhile, CEO Adam Goldstein says he expects commercial flights for the craft will begin at some point in the year -- a forecast that suggests the company is confident in soon getting the necessary regulatory approvals to begin operating in key markets. Along those lines, the company also recently announced that it has entered into an agreement with government officials and other parties in the United Arab Emirates and Abu Dhabi to launch what could wind up being the first commercial flights for electric flying taxis. Announcements from Archer also suggest the company is positioning itself for a commercial launch in Japan.
And while the first commercial flights for its Midnight aircrafts may not take place in the U.S., there are some good reasons to be optimistic about the outlook in the company's domestic market. For starters, the new Trump administration is broadly expected to usher in a more lax regulatory environment compared to what was seen under the Biden administration. The company has also said that it could begin operating out of airports including Newark International and Chicago O'Hare by the end of 2025.
Archer has $6 billion in orders -- and an ace up its sleeve
With its last update, Archer said that it already had more than $6 billion worth of orders for its Midnight flying vehicles. While it will take multiple years for Archer to scale its production and meet that demand, the company's current order book makes its grand total of zero dollars in revenue much less concerning. The company will still have a highly growth-dependent valuation even if it notches its first sales and commercial flights this year, but the path to ramping up sales for its Midnight aircraft already looks pretty well defined.
In addition to targeting the commercial market, Archer has also recently announced that it's moving into the defense industry. Through a partnership with Anduril, an innovation-focused defense tech company, Archer will be making hybrid-power VTOL craft aimed at winning contracts through the U.S. Department of Defense (DOD). Just last October, Anduril won a roughly $250 million contract with the DOD for its own VTOL aircraft -- following a separate $100 million contract win. The long-term opportunity for Archer in the defense space could be huge.
So despite the business having yet to record a single dollar in revenue, Archer Aviation appears to have the makings of a market-crushing growth stock. Between unfolding opportunities in the commercial flight and defense industries, Archer has the makings of a worthwhile portfolio addition for risk-tolerant investors.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
