Archer Aviation Stock (ACHR) Set To Open At New High, Rally Continues

Archer Aviation's stock (NASDAQ: ACHR) has rapidly transformed from a speculative bet in the burgeoning electric vertical takeoff and landing (eVTOL) sector into one of the most closely watched names on the NASDAQ.

The company’s stock price have experienced a remarkable rally in May 2025, up 43.75% since the start of the month, and an impressive 38.68% surge over the past week. This explosive move, which put ACHR within striking distance of its 52-week high of $12.48, is underpinned by a confluence of positive catalysts: robust Q1 2025 results, a landmark partnership with the LA28 Olympic Games, and significant progress toward regulatory certification and commercialization.

Now in this morning's pre-market, ACHR is once again on the rise, with a gain of 9.52% in the session propelling the stock to new highs of $13.27.

Archer’s Q1 2025 earnings marked a significant inflection point. While the company remains pre-revenue from commercial operations, it reported a narrowed net loss of $93.4 million, or -$0.17 per share, outperforming analyst expectations and reflecting improved operational efficiency.

Perhaps most importantly, Archer’s cash reserves stand at a formidable $1.03 billion, providing ample runway to fund ongoing development and scale production through the critical pre-commercialization phase.

The company’s disciplined approach to spending is notable, with management guiding for a Q2 2025 adjusted EBITDA loss of $100–$120 million, essentially flat from prior quarters. This reflects Archer’s ability to advance its Midnight aircraft program and manufacturing expansion without ballooning costs, a key factor in sustaining investor confidence as the company approaches pivotal commercialization milestones.

The announcement that Archer will serve as the exclusive air taxi provider for the 2028 Los Angeles Olympic and Paralympic Games has electrified both the market and the broader eVTOL industry. Archer’s Midnight aircraft will transport VIPs, athletes, and fans between iconic venues, compressing hour-long commutes into 10–20 minute flights. This partnership is more than a marketing coup; it is a real-world validation of eVTOL technology’s promise and a high-profile showcase set to be broadcast worldwide.

The LA28 deal is expected to accelerate public acceptance of urban air mobility (UAM), and positions Archer to lead the sector as cities and event organizers seek innovative solutions to urban congestion. The company’s planned vertiport network in Los Angeles, integrated with major broadcast coverage, could serve as a blueprint for future urban deployments globally.

Archer’s commercialization roadmap is further bolstered by a series of high-profile partnerships and regulatory advances. A $1.5 billion order from United Airlines anchors Archer’s ambitions in the U.S., with plans to connect Manhattan to Newark Liberty International Airport via air taxi by 2025. Meanwhile, collaborations with Palantir Technologies on AI-powered flight operations and a manufacturing alliance with Stellantis, which brings automotive-scale production techniques to Archer’s Covington, Georgia facility, enhance both operational scalability and cost efficiency.

Wall Street has taken notice, yet is struggling to keep pace with the stock's ascent. Analysts have raised their 12-month price target to $11.39, below current price action. Notably, institutional investors such as ARK Investment Management have increased their stakes, signaling confidence in Archer’s execution and growth prospects.

Despite Archer’s impressive progress, the road ahead is not without obstacles. Regulatory delays, particularly around FAA certification, could push back commercial launches. The eVTOL sector is fiercely competitive, with rivals like Joby Aviation and Lilium advancing their own certification and commercialization efforts. Additionally, Archer’s heavy reliance on strategic partners for funding and execution introduces additional risk, especially if macroeconomic conditions deteriorate.

The company’s path to profitability remains challenging, as it must transition from R&D-heavy operations to cost-efficient mass production. Whether the LA28 deal, amongst other developments will be enough to sustain momentum is yet to be seen. For now at least, markets are pushing the stock to new highs, with bulls very much in charge of the narrative.