Investors Eye eVTOL Opportunities from Joby and Archer

Investors are paying close attention to the eVTOL industry, particularly Joby Aviation and Archer Aviation. Both companies are leading this innovative sector, drawing significant investments and partnerships that could ultimately boost their stock valuations.

Date: 30-01-2025

AI Rating: 6

Investor Sentiment on eVTOL Stocks

The analysis discusses two prominent players in the electric vertical take-off and landing (eVTOL) aircraft market, Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR). Both companies are vying to establish a foothold in this emerging sector, and their financial backing from notable investors raises investor confidence. However, neither company has yet attained critical scale, leaving their stock valuations speculative.

Joby has received considerable investments totaling nearly $1 billion from notable partners, including Toyota Motor, Delta Air Lines, and Intel, easing liquidity concerns as it develops its aircraft prototypes. On the other hand, Archer benefits from strong partnerships too, notably with United Airlines and Stellantis, alongside a burgeoning order book exceeding $6 billion.

The report indicates Archer is projected to generate over double Joby’s revenue next year, despite Joby having a higher market cap. This discrepancy suggests that Joby might be valued at a premium despite a longer growth trajectory, which might deter some investors. The focus on revenue growth here points towards broader market expectations: rapid revenue expansion in the eVTOL space is becoming a crucial indicator for investors assessing long-term value.

Stocks: JOBY ACHR