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Saudi Arabia Air Taxi Deal and U.S. Buildout Could Be A Game Changer For Archer Aviation (ACHR)

Simply Wall St · 2d ago
  • Saudi Arabia’s General Authority of Civil Aviation recently announced an agreement with Archer Aviation to develop an FAA-aligned regulatory pathway and pilot electric air taxi operations in cities such as Riyadh and Jeddah, alongside proof-of-concept flights at major tourism projects.
  • Together with Archer’s acquisition of Hawthorne Airport in Los Angeles and its planned Miami air taxi network, the GACA pact underscores how the company is building both the regulatory and physical infrastructure needed for commercial eVTOL deployment across multiple regions.
  • We’ll now examine how this Saudi regulatory collaboration, alongside Archer’s expanding U.S. infrastructure, shapes the company’s broader investment narrative.

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What Is Archer Aviation's Investment Narrative?

To own Archer today, you have to believe eVTOLs move from concept to scaled, regulated transport, and that Archer’s specific model of partnering with airlines, automakers and governments turns that into meaningful revenue despite zero current sales and sizeable losses of US$627.4m. The Saudi GACA deal fits directly into the near term catalysts: it reinforces Archer’s push to align international rules with the FAA, builds another sandbox for early operations alongside Miami and Hawthorne, and modestly strengthens the case that its heavy equity fundraising and past dilution are funding a coherent global network rather than isolated projects. That said, with no profitability expected in the next three years, high cash burn, elevated CEO pay, and sharp share issuance, the biggest questions remain about execution, certification timing and future funding, even with this new headline.

Yet beneath the Saudi optimism, funding risk and ongoing dilution remain things shareholders need to watch.

Despite retreating, Archer Aviation's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

ACHR 1-Year Stock Price Chart
ACHR 1-Year Stock Price Chart

Forty-nine fair value estimates from the Simply Wall St Community span roughly US$2.22 to US$22.20 per share, reflecting very different views on Archer’s prospects. Set against that wide band, the recent Saudi regulatory pact and expanding U.S. infrastructure highlight how much future progress on certification and capital raising could influence where along this spectrum the market ultimately settles. Investors may want to weigh several of these independent viewpoints when thinking about Archer’s long runway to any potential commercial payoff.

Explore 49 other fair value estimates on Archer Aviation - why the stock might be worth over 2x more than 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.