Archer Aviation Inc. (ACHR): A Bull Case Theory 

We came across a bullish thesis on Archer Aviation Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on ACHR. Archer Aviation Inc.’s share was trading at $7.43 as of January 29th. ACHR’s trailing P/E was 6.95 according to Yahoo Finance.

Archer Aviation is emerging as a leading player in urban air mobility with its “Midnight” eVTOL aircraft, a piloted, four-passenger air taxi featuring a 12-propeller design for low-noise, short-range city flights of 20–50 miles at speeds up to 150 mph. Since its founding in 2018 and NYSE listing in 2021, Archer has leveraged aggressive innovation, strategic partnerships, and high-profile backers like Boeing and Stellantis to position itself at the forefront of the eVTOL race.

The company has demonstrated its technology through public flight tests in the U.S. and UAE, while building infrastructure for commercial operations, including a Part 135 Air Carrier certificate and ownership of Hawthorne Airport in Los Angeles. Archer counts United Airlines among its launch customers and is targeting service launch by 2026, with global scale ambitions in time for the 2028 Olympics.

Financially, Archer remains pre-revenue, investing heavily in certification, manufacturing, and technology development. Q3 2025 net losses widened to $130 million on $174.8 million in operating expenses, reflecting R&D and talent expansion, though cash on hand remains robust at over $2.0 billion following an oversubscribed $650 million equity raise. This strong liquidity underpins both operational runway and credibility with partners, though the company acknowledges that delays in certification or production may require additional funding.

FAA certification of Midnight is central to commercialization, with Archer progressing through rigorous flight testing, nearing completion of conventional takeoff and landing milestones, and preparing for the Type Inspection Authorization process. Concurrently, the company is leveraging pre-certification pathways, including U.S. pilot programs and paid demonstration flights in Abu Dhabi, to begin limited operations.

Achieving full type certification by 2026 would unlock the commercial backlog and enable large-scale air taxi services, while any delays could extend cash burn and postpone revenue recognition. Archer’s combination of technological validation, strategic partnerships, and financial strength positions it as a compelling early-stage investment in advanced aviation.

Previously we covered a bullish thesis on Archer Aviation Inc. (ACHR) by Xtianus25 in January 2025, which highlighted upcoming certification milestones, pilot-only flight tests, and progress toward a 2025 UAE commercial launch. The company’s stock price has depreciated approximately by 19.84% since our coverage. The thesis still stands as Archer advances FAA certification. LongYield shares a similar perspective but emphasizes liquidity and commercialization strategy.

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Disclosure: None.