Air Taxis by 2025? Archer Aviation’s Ambitious Plans and Stock Potential

well it's an idea straight out of a sci-fi movie  but Archer Aviation is working to make air taxis a reality our Market be analyst jayu joins us to  break down what's happening in this stock right   now Jay I think everyone can get behind the idea  of shortening your commute with an air taxi but   just how close is Archer Aviation to actually  making this a reality well they are basically   looking to launch in 2025 um their key Flagship  product is a an air taxi called the midnight   technically called an avall electronic vertical  takeoff and Landing aircraft it can carry four   passengers and a pilot they can go 100 miles top  speeds of 150 miles hour and they are actually   setting up their networks as well setting up  the LA Network and the San Francisco Network   so they'll be ready to launch in 2025 and 2026  that is very soon and it all sounds exciting   and fantastic but also very expensive just  how much has Archer spent on developing this   product in their last quarter they spent uh  just over $92 million um now they have about   3 UH 60 million or so left in cash uh but they  also have commitments uh from their Partners uh   stantis for example these guys have already put  up about $300 million and they've also committed   to putting up another $39 to $400 million to  get their manufacturing up and running these   guys are the contract manufacturers so there's  a lot of money pouring into pouring into this   program yeah a lot of bigname investors coming  behind this program but what does it mean for   everyday investors who might be looking at  Archer Aviation stock as a buy right now well   Archer actually pulled back about 40% from last  month so it offers a pretty decent opportunity   to get in now keep in mind once again this  is a speculative stock so this is a situation   where you know they could run out of money even  before they they launched their Network so it's   very important to understand speculative but  uh the $3 level is a very strong support $314   is basically where stellantis is in the stock  a little over 17 million shares so if you get   it in a pull on a pullback back to that area  you know you're basically in the same position   position as a Stant stellantis um and a lot  cheaper than let's say your Kathy Wood uh of   Arkin vest which owns 99.9% of the company with  over 28 million shares at a higher price so what   are analysts saying about the possible upside and  some price targets for this stock moving forward   right so basically it's hard to put an exact  price Target on it right now it's just running   on sentiment so this could hit double digits uh  as we get close closer to the launch um there's   going to be catalysts obviously so basically once  they have their um FAA certification to actually   start taking passengers that's going to make a big  difference it's going to actually boost the stock   up once they actually start uh you know having  commercial commercial flights that's going to   pump the stock up as well so there are stages  where the stock should be able to continue to   inch a little higher rally rally rally pull back  you know hold based until it gets to the point   where these guys are actually uh producing at  full capacity but Jay what is this company mean   for consumers who are looking for those quicker  solutions for commuting in especially some of   the largest cities like New York and La those are  the people I'm thinking right now who are using   helicopters to make that commute a lot shorter  sure um so basically they want to shrink your   commute time from 60 to 90 minutes by a car they  want to shrink it down to about 10 minutes and   you can imagine uh how many people would want  to do that now it's cost prohibitive right now   yes you could rent a helicopter in Manhattan you  could use blade uh to travel from uh Manhattan   to JFK in 10 minutes but it's going to cost you1  to2 a mile with air taxis they're trying to cut   that down to $6 a mile by 202 2028 U they want to  cut the price down to $2 a mile and then by 2030   and after they want to actually cut that price  down to a dollar a mile so that's going to be   a real benefit for consumers for everyday people  who actually want to save on their commute times   wow that's impressive it's also impressive to  see some of the Catalyst already happening with   this company with some of the big Partnerships  they're already starting to get even before   launching talk about those a little bit sure they  so basically they've already collaborated with   Southwest Airlines and United Airlines uh and  putting together the Air Taxi Network um United   has already committed conditional commitment to  basically purchase a billion dollars the midnight   aircraft uh future flight Global these guys  have uh committed to buying well conditionally   committed to buying about $580 Million worth the  US Air Force has just taken delivery of their   first aircraft so that they can basically test  it out to see you know if they're going to order   some more down the road there a lot of catalysts  that are coming together almost to a perfect storm   well we will no doubt continue to hear about this  stock making headlines over the next few months   and years as these new products are launched  stick with marketbeat as we continue to follow   what happens with archer Aviation and all stocks  right at marketbeat.com as always happy investing [Music]