As urban congestion worsens each day and the push for sustainable transport intensifies, the concept of flying taxis is moving from sci-fi fantasy to near-term reality. With electric vertical takeoff and landing (eVTOL) aircraft at the forefront of this shift, companies like Archer Aviation ACHR and Joby Aviation JOBY stand to gain from the commercialization of urban air mobility. 

Archer is gaining momentum with its sleek Midnight eVTOL aircraft and collaborations with United Airlines and the U.S. Air Force, focusing on high-volume manufacturing and scalable networks. Joby, meanwhile, is banking on its head start in flight testing and vertically integrated approach, including its FAA-certified production facility. As the industry edges closer to liftoff, investors might be asking: Which eVTOL pioneer is better positioned to soar in 2025 and beyond? Let’s delve deeper.

Financials and Growth Catalysts: How Do Archer and Joby Stack Up?

ACHR ended 2024 with more than $1 billion in liquidity. Long-term debt totaled $75 million while current debt was nil. This should provide the company with the necessary resources to execute its civil and defense business strategies and invest in new innovative technologies.  

Archer Aviation’s growth is underpinned by strong government and commercial collaborations. The company ended 2024 with an exclusive partnership with Anduril Industries to jointly develop a hybrid VTOL aircraft for critical defense applications and a multi-party collaboration agreement with key UAE and Abu Dhabi entities to advance the establishment of electric air taxi operations in Abu Dhabi. This year, ACHR signed an agreement with Ethiopian Airlines, making it the second customer planning to deploy Archer’s Midnight jet under the “Launch Edition” program.  

Looking ahead, the company aims to launch its Midnight eVTOL aircraft commercially by late 2025, targeting urban air mobility demand. Its partnership with United Airlines for planned air taxi services in major U.S. cities should further strengthen its capability in the eVTOL market. The completion of ACHR’s 400,000-square-foot aircraft manufacturing facility in late 2024 should also help it meet the rising demand for eVTOL jets in the coming years. 

Joby Aviation also maintains a strong cash position, with almost $1 billion on hand as of Dec. 31, 2024. As of the same date, both its long and short-term debts were nil. This should provide JOBY with the financial flexibility it needs for designing and manufacturing aircraft, as well as developing production lines for jet components. 

Joby Aviation’s growth prospects are bolstered by its strategic partnerships and advanced certification timeline. In March 2025, JOBY announced a partnership with Virgin Atlantic for the launch of its revolutionary air taxi service in the UK. Moreover, it became the first eVTOL company to receive a Part 135 Air Carrier Certificate from the FAA, allowing it to start operations with conventional aircraft while preparing its eVTOL. 

Looking ahead, JOBY aims to deliver its eVTOL aircraft to Dubai by mid-2025 and start commercial passenger operations by late 2025 or early 2026. Moreover, JOBY’s high-rate production facility is planned for Dayton, OH, where the company purchased a 40,300-square-foot facility in 2024 and identified a separate 140-acre site, which comes with enough land to build over 2 million square feet of manufacturing space. This should help JOBY deliver more aircraft in the coming years. 

Challenges for JOBY & ACHR 

Both Archer Aviation and Joby are navigating a capital-intensive runway. However, whether the business model for both these stocks will be sustainable in the long run remains uncertain. This is because of the nascent stage of the eVTOL aircraft market itself. So, ACHR and JOBY's success depends not only on their ability to design, develop and certify eVTOL aircraft but also on how the demand for these vehicles evolves. 

Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY and ACHR's growth potential may be constrained. Moreover, since both these stocks are in their pre-revenue stage (although JOBY has generated an insignificant amount of revenues in recent times), investors might remain concerned about their long-term growth viability. 

How Do Zacks Estimates Compare for ACHR & JOBY?

The Zacks Consensus Estimate for Archer Aviation’s 2025 and 2026 loss per share implies a year-over-year improvement.  However, the stock’s bottom-line estimates been trending downward over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Joby Aviation’s 2025 and 2026 loss per share suggests year-over-year growth.  The stock’s near-term bottom-line estimates, however, have been trending southward over the past 60 days.

Image Source: Zacks Investment Research

Stock Price Performance: ACHR vs JOBY

ACHR (down 7.9%) has outperformed JOBY (down 21.6%) over the past three months and has done the same in the past year. Shares of ACHR and JOBY have surged 119.8% and 27.7%, respectively.

Image Source: Zacks Investment Research

ROE: ACHR vs JOBY

The image below, reflecting a negative Return on Equity (ROE) for ACHR and JOBY, suggests that neither of these eVTOL stocks is efficiently generating profits from its equity base.

Image Source: Zacks Investment Research

Final Task

While both Archer and Joby are well-positioned to capitalize on the emerging eVTOL market, both companies remain speculative, with their pre-revenue-stage ventures exposed to significant execution, regulatory and adoption risks. 

That said, investors looking to enter the urban air mobility space should take a cautious approach while considering stocks like ACHR and JOBY and be prepared for high volatility and uncertain timelines. Considering the aforementioned comparative analysis of both these stocks, Archer Aviation may offer relatively better near-term upside, considering its outperformance over JOBY at the bourses. However, neither of them is without substantial risk. 

ACHR carries a Zacks Rank #3 (Hold) while JOBY holds a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.    

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This article originally published on Zacks Investment Research (zacks.com).

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