eVTOL Stock Face-Off: Is Joby Aviation or Archer Aviation the Better Buy Right Now?
Written by Leo Sun for The Motley Fool -> Joby and Archer both lost their luster over the past year. But both stocks could blast off once the FAA approves their first commercial flights. Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR) are both early movers in the e
But both stocks could blast off once the FAA approves their first commercial flights.
Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR) are both early movers in the electric vertical takeoff and landing ( eVTOL ) aircraft market. These aircraft are greener and easier to land in crowded urban areas than helicopters, but the Federal Aviation Administration (FAA) hasn't fully approved their first commercial flights.
Joby and Archer both went public through mergers with special purpose acquisition companies (SPACs) in 2021, but both stocks trade below their opening prices. Without any commercial flights, Joby and Archer were speculative stocks trading at high valuations -- so their luster faded as rising interest rates drove investors toward more conservative investments.
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But according to Eve Air Mobility 's Global Market Outlook, there could be 30,000 eVTOLs in the air carrying three billion passengers globally by 2045. So could one of these unloved eVTOL stocks still be a great play on that secular trend?
Joby's S4 and Archer's Midnight both carry a single passenger and four passengers. The S4 can travel up to 150 miles on a single charge at a maximum speed of 200 miles per hour. The Midnight can travel up to 100 miles with a maximum speed of 150 miles per hour.
The S4 travels faster and farther than the Midnight because it uses single-tilt rotor propellers to lift and cruise. The Midnight is heavier because it uses separate propellers to lift and cruise. Joby is also developing a hydrogen-powered version of its eVTOL, but Archer isn't.
Joby and Archer are both working with the U.S. Department of Defense (DoD), and major investors and customers back both companies. Joby's backers include Toyota , Delta Air Lines , and Uber . Archer's backers include Stellantis , United Airlines , and Abu Dhabi Aviation. Both companies plan to initially launch their aircraft in the U.S. and the UAE.
