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Archer Aviation (ACHR) shares have lost roughly 20% in less than three months, epitomizing the volatility that continues to plague the electric vertical takeoff and landing (eVTOL) industry.
Investors have punished ACHR because it’s losing money fast amidst continued uncertainty about the commercial viability and timeline for widespread eVTOL adoption.
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Versus its year-to-date low, however, Archer Aviation stock remains up some 21% heading into the new year.
ACHR shares are attractive – especially at the current toned-down valuation – as the company has made meaningful progress toward international commercialization.
In 2026, it plans on launching revenue-generating operations in the United Arab Emirates (UAE), potentially restoring confidence in its electric aircraft platform and operational capabilities.
Meanwhile, the NYSE-listed firm remains entrenched in the final phase of FAA type certification, a critical milestone required before introducing commercial flights in the U.S. as well.
According to Barchart, options data also currently signal upside in Archer Aviation to north to $10 by April 17 with a put-call ratio of 0.25. This means the eVTOL stock could rally by as much as 28% over the next four months.
On the flip side, competitive dynamics present significant challenges for Archer Aviation shares.
Its staunch rival, Joby Aviation (JOBY), appears further ahead in the certification race and has secured strategic partnerships with established names like Uber (UBER) and Delta Air Lines (DAL).
Its commitment to becoming a transportation services company rather than an aircraft manufacture only offers significant competitive advantages.
Meanwhile, larger and better-funded aerospace firms like Boeing (BA) are leveraging decades of experience against newer entrants like ACHR as well.
Finally, the technical picture isn’t any better for Archer Aviation either. At the time of writing, it’s trading below its major moving averages (MAs), indicating bears remain in control across multiple timeframes.
Despite aforementioned risks, Wall Street remains constructive on Archer Aviation stock for the next 12 months.