Better Buy: Archer Aviation vs. Joby Aviation
Investment
The Motley Fool

Better Buy: Archer Aviation vs. Joby Aviation

July 27, 2025
09:31 PM
4 min read
AI Enhanced
investmentaerospacetransportationtechnologymarket cyclesseasonal analysis

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Both Archer Aviation and Joby Aviation are preparing to venture into the wild blue yonder. But which one should investors choose to fly with?

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4 min read

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investment

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Published

July 27, 2025

09:31 PM

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The Motley Fool

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investmentaerospacetransportationtechnologymarket cyclesseasonal analysis

The re indicates that Go outside and look up the next time you hear an aircraft overhead: You'll see the same airplanes or helicopters you're used to seeing

But that may soon change in certain metropolitan areas

At the same time, Manufacturers of electric vertical takeoff and landing (eVTOL) aircraft are gressing toward the launch of commercial operations, given current economic conditions

Recognizing this, investors are paying close attention to eVTOL leaders Archer Aviation (ACHR 2

Furthermore, 00%) and Joby Aviation (JOBY 3

Moreover, Let's see how these two fool

Additionally, Com contributors break down the bull cases for each stock (noteworthy indeed)

However, Image source: Getty Images

Moreover, Archer targets commercial and defense applications Scott Levine (Archer Aviation): Taking a two-nged apach, Archer plans on selling its Midnight eVTOL aircraft directly to operators as well as viding a direct-to-consumer aerial ride- service

Already, the company has made significant gress in both regards, but what is particularly interesting its growth spects is the opportunity as a defense contractor

Archer has inked a number of notable agreements, suggesting the company is well positioned for a quick takeoff once it has received all necessary Federal Aviation Administration (FAA) certifications

Furthermore, In addition to a deal with United Airlines, which will see the carrier purchase up to $1. 5 billion in eVTOLs, Archer has signed deals with Abu Dhabi Aviation and Ethiopian Airlines -- both of which are under Archer's Launch Edition gram to deploy aircraft in early-adoption

In contrast, The company continues to strengthen its foothold in the civilian market, but it's the possibility of expanding into defense applications that seem particularly alluring

In late 2024, Archer announced the formation of an exclusive partnership with defense contractor Anduril to develop hybrid eVTOL aircraft for crucial defense applications, given the current landscape

The goal is securing a potential gram of record from the Department of Defense (which is quite significant)

Should Archer succeed in a hybrid eVTOL for defense purposes, the company would also have a sizable opportunity in selling its aircraft to NATO allies

Conversely, With global tensions remaining high and showing little indication of abating, the ability to offer a hybrid eVTOL aircraft to U, given the current landscape

Furthermore, Allies seems an auspicious option, given the current landscape

Nevertheless, Heavyweight backers vide reassurance for Joby investors Lee Samaha (Joby Aviation): Joby Aviation is flying a different route to generating long-term value for investors, but it makes sense and gives the stock more upside potential than its rivals

One differentiating factor is that -- un many of its peers, which heavily rely on established companies for nology -- Joby s a vertically integrated cess where it develops components in-house

Furthermore, Moreover, Joby doesn't intend to sell its aircraft to other companies

Instead, it plans to manufacture and operate its aircraft itself while also offering transportation services

It's an ambitious goal that might have seemed unfeasible a decade ago (fascinating analysis)

However, the company has some heavyweight backers, including Toyota, Uber, and Delta Air Lines, which gives cause for confidence, given the current landscape

Moreover, Toyota has committed to up to $894 million in Joby and is viding parts as well as helping with its manufacturing

Nevertheless, Meanwhile, Uber's investment and Joby's acquisition of Uber's flying taxi, Elevate, position Joby to scale up transportation services after certification

Delta's investment and partnership will enable Joby to offer airport transfers to Delta passengers -- a value-added service for both companies, as Delta seeks to foster loyalty among its premium customers

All told, Joby's plans have solid backing, and the stock offers substantial upside potential to investors

Is it better to fly with s of Archer or Joby

Disruptors in the travel industry don't come along frequently, but when they do, investors sit up and take notice

This's the case with both Archer and Joby -- two companies leading the path forward in the development of electric air taxi service, in this volatile climate

For these upstart companies, there's bound to be some turbulence as they navigate a nascent industry, yet investors with long-term horizons may be rewarded with an Archer or Joby investment

For those also interested in defense industry exposure, Archer will be more appealing, while those less concerned with the defense angle may choose Joby instead.