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Electric air taxis, once considered futuristic, are rapidly becoming one of the most talked-about frontiers in next-generation transportation. Companies in the electric vertical takeoff and landing (eVTOL) space are racing to commercialize zero-emission aircraft that could transform urban mobility, cutting commute times from hours to minutes. Among these early innovators, Archer Aviation (ACHR) has been turning heads with its steady progress toward real-world deployment. Archer just announced a major agreement with Korean Air to deliver up to 100 Midnight eVTOL aircraft for both government and commercial use across South Korea. The deal positions Korea as a future leader in advanced air mobility and gives Archer a massive opportunity for international growth. With shares already climbing on the news, investors are asking. Does this Korea expansion make ACHR stock a buy now? Let's dive deeper and find out. About ACHR Stock Headquartered in San Jose, Archer Aviation is an aerospace startup that designs and builds electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Archer’s flagship model, Midnight, is a four-seat all-electric air taxi aiming to replace short car commutes with 10–20-minute flights. Archer operates across commercial and defense divisions and has raised over $850 million in mid-2025 to build out manufacturing and certification plans. After a bruising 2024, Archer’s stock has staged a remarkable comeback this year. The share price, which ended 2024 near $1.87, now trades between $11 and $13, a stunning gain of roughly 217% over the past 52 weeks. Several catalysts have fueled this surge, including major flight-test milestones such as record-setting altitude and distance flights, along with new partnerships like Soracle in Japan and its planned role as an air-taxi provider for the 2028 Los Angeles Olympics. That enthusiasm has driven Archer’s market cap to around $8 billion. However, the valuation looks extremely stretched; its price-to-sales (P/S) ratio sits near 5,118, compared to a sector median of about 2. This suggests that while investor excitement is high, ACHR stock is trading at levels far above traditional industry benchmarks. Archer Aviation Heads to Korea On Oct 20, shares of ACHR surged nearly 9% after Archer Aviation announced a landmark partnership with Korean Air, signing an agreement to introduce its four-seat Midnight electric air taxis in South Korea. Under the deal, Korean Air plans to purchase “up to 100” Midnight eVTOL aircraft, making Korea one of Archer’s first international markets. The Moonshot-capable Midnight, already proven in recent flight tests and a public demonstration at the California International Airshow, is designed for four-passenger, 10- to 20-minute city trips. Archer’s founder and CEO, Adam Goldstein, hailed Korean Air’s “industry-leading eVTOL technology” and Korea’s leadership in “next-generation air mobility” as validation of Archer’s vision. Besides Korean Air and Lilium, recent news has been almost uniformly positive for Archer. During Q2, Archer delivered its first Midnight to Abu Dhabi as part of a UAE launch partnership and acquired Overair’s patents and Mission Critical Composites assets to boost its defense business. Archer was also chosen as the official air taxi provider for the 2028 LA Olympics. Archer Deepens Investment Ahead of 2026 Commercial Launch Archer Aviation’s latest Q2 results make one thing clear: the company is still very much in investment mode. It hasn’t started generating revenue yet since it remains in the pre-commercial stage, but spending continues to ramp up as production and certification efforts accelerate. The company reported a net loss of $206 million, nearly double the $106.9 million loss from the same quarter last year. Operating expenses jumped to $176.1 million from $121.2 million as engineering, testing, and manufacturing efforts gained steam. On the bright side, Archer’s balance sheet looks strong. The company ended the quarter with about $1.73 billion in cash and equivalents, its highest quarter-end cash balance ever. That figure grew even higher by September after an $850 million equity raise. Free cash flow was negative, with an operating cash burn of around $198 million and capital expenditures of about $29 million, bringing total outflows to roughly $227 million for the quarter. CEO Adam Goldstein highlighted that the company is “executing from a position of strength” thanks to its sector-leading $1.7 billion liquidity, as it scales up aircraft manufacturing and prepares for certification milestones. Archer began producing Midnight aircraft in early 2025 and had six aircraft in concurrent production by mid-2025 as it works toward FAA approval and commercial launches. The company didn’t issue revenue guidance, understandable given it’s still pre-revenue, but it forecasted an adjusted EBITDA loss of $110 million to $130 million for Q3 2025. In short, Archer is burning cash fast but doing exactly what it needs to build, test, and lay the groundwork for a potential 2026 commercial debut once certification is secured. What Do Analysts Think About ACHR Stock The analyst community is generally bullish on ACHR, with the consensus rating being a “Moderate Buy.” Overall, out of nine analysts, four rate ACHR as a “Strong Buy,” two as a “Moderate Buy,” and two as a “Hold.” Notably, there are no “Sell” ratings for the stock. While ACHR currently trades near the mean target of $12.40, the high target of $18 implies an expected upside potential of approximately 70% from current levels. The Bottom Line on ACHR Stock Analysts and investors see Archer’s fundamentals as largely unchanged by the news; the company is still burning cash and pre-revenue, but the Korean Air agreement validates its market reach. For long-term investors, the question is whether Archer can turn its high-flying buzz into real revenue. The company’s strong balance sheet and expanding partnership network now spanning the U.S., the Middle East, Europe, and Asia suggest it has the runway to try.
