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]