How Global Expansion and Powertrain Supply Deals at Archer Aviation (ACHR) Have Changed Its Investment Story

• Over the past week, Archer Aviation has advanced its global presence with pivotal agreements in Saudi Arabia and the UAE, completed successful flight tests, and announced a new supply deal for its electric powertrain with Anduril Industries and EDGE Group.

• This expansion signals Archer’s shift from purely developing eVTOL aircraft to supplying core electric powertrain technology for both commercial and defense markets, broadening its potential revenue streams and industry influence.

• We’ll explore how Archer’s entry into international defense technology supply highlights a significant evolution in the company’s investment narrative.

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For investors considering Archer Aviation, the story hinges on a belief in the mainstream arrival of electric vertical takeoff and landing (eVTOL) aircraft and Archer’s ability to establish itself as a supplier of core technology for both commercial and defense sectors. The latest news brings both momentum and complexity. On one hand, new agreements in Saudi Arabia and the UAE, complemented by Archer’s expanded supply partnership with Anduril and EDGE Group, support a potential shift toward meaningful revenue generation, an important catalyst given the company’s lack of revenue to date. On the other, the recent trade-secret lawsuit filed by Joby Aero piles on legal risk, which could distract management or raise costs in the near term, even as Archer signals confidence in its defense. For now, recent price declines suggest the legal dispute may be at the forefront of investor minds, potentially dampening enthusiasm for short-term catalysts arising from new international deals.

But, unlike the promise of exciting new partnerships, legal disputes can escalate in unexpected ways, an investor consideration worth tracking. Despite retreating, Archer Aviation’s shares might still be trading above their fair value and there could be some more downside. Discover how much.

Simply Wall St Community members have submitted 48 fair value estimates for Archer Aviation, stretching from US$2.26 to US$22.56. While some see room for outsized gains, others remain cautious, especially as legal challenges shift short-term priorities and investor sentiment swings with new developments. Explore contrasting views within the community to see how your outlook fits in.

Explore 48 other fair value estimates on Archer Aviation – why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ACHR.

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