Archer Aviation (NYSE: ACHR) has seen its stock fall more than 60% from its 2025 highs, raising the obvious question of whether the selloff creates a buying opportunity.
The stock is now trading at roughly the same level it occupied in 2021, shortly after going public through a merger with a special purpose acquisition company, commonly known as a SPAC.
Despite the steep decline, Archer Aviation has made substantial progress since its public debut, giving some investors reason to believe the current price represents genuine value.
The company is developing an electric vertical take-off and landing aircraft, a technology category known as eVTOL, which many in the aerospace industry see as potentially transformative.
Archer’s existing eVTOL model, called Midnight, is currently in active testing as the company works toward securing commercial flight approval from regulators.
The company recently introduced a variation called Thunder, designed for military and industrial applications, which operates under a different and less stringent regulatory pathway than Midnight.
Real-world use cases for the aircraft include urban air taxi services, allowing passengers to bypass ground traffic congestion, as well as unmanned supply deliveries to remote locations like offshore oil rigs.
However, Archer Aviation remains a money-losing startup, and the company will likely continue burning cash for some time before either aircraft generates meaningful commercial revenue.
Regulatory approval for Midnight is still pending, and even Thunder requires further development before it is ready for widespread deployment in the field.
The competitive landscape adds another layer of risk, as Archer is far from the only company developing eVTOL technology, and rivals with stronger industry connections or superior products could erode its position.
Given the combination of regulatory uncertainty, ongoing losses, and stiff competition, most investors would be well served waiting for commercial approval before committing capital to ACHR shares.
The stock may look cheap on a historical basis, but a low price alone does not resolve the fundamental uncertainties that continue to surround Archer Aviation’s business model and timeline.
