Archer Aviation investors just received some upbeat news

Growing by over 228% in 2023, Archer Aviation (ACHR) gave investors plenty to be happy about last year. In 2024? Not so much. Shares of upstart air taxi stocks have been on the decline for most of 2024, down about 50% year to date.

But that doesn’t mean there isn’t positive news regarding the company’s operations. In early September, Archer Aviation, a developer of electric vertical takeoff and landing (eVTOL) aircraft, announced an auspicious development regarding its test flights — news that investors should take encouraging certainty about the company’s growth prospects.

Testing, testing, 1, 2, 402!

In early September, Archer announced that it had completed 402 test flights so far in 2024 with a view to achieving its type certification. This is a surprising development, given that the company had set out to complete 400 test flights by the end of the year, so the company is well ahead of schedule. Speaking about the company’s achievements in achieving this feat, Archer CEO and founder Adam Goldstein said: “When we first set our goal of 400 flights this year, it was seen as aggressive, but here we are in August already removing it. I am proud of the Archer flight test team and the support groups that made this happen.”

The successful completion of test flights is a critical step for Archer as it strives to begin commercial operations. The company has already received other important FAA certifications, including the Part 135 Air Carrier and Operator Certificate and the Part 145, which allows it to perform specialized aircraft repair services.

And in other news…

The completion of the 402 test flights closely follows other encouraging announcements from the company. Last month, Archer disclosed in its financial report for the second quarter of 2024 that it is advancing plans to operate in the Los Angeles metropolitan area, where it plans to begin operations as early as 2026. This includes providing air taxi services to customers at LAX Airport , University of Southern California and Orange County — among other locations.

Earlier this year, Archer announced that it had signed a memorandum of agreement with Atlantic Aviation to provide air taxi services in several metropolitan areas: New York City, Los Angeles, northern California and southern Florida. In partnership with Signature Aviation, Archer plans to operate in additional urban markets such as Chicago and San Francisco.

In addition to the United States, Archer is aiming to launch operations in foreign markets. In discussions with government officials, Archer hopes to begin operating in the UAE as early as 2025. In partnership with InterGlobe Enterprises, Archer expects to deploy 200 Midnight eVTOL aircraft in India, where the companies plan — beginning in 2026 — to providing air taxi services to customers as well as other services including cargo, logistics, medical and emergency services as well as private and charter company services.

Is now the time to add Archer shares to your portfolio?

While the encouraging news may warm the hearts of investors who have already put Archer stock in their portfolios, those on the sidelines should feel no sense of urgency to click the button to buy an Archer investment. With Archer’s stock selling off this year, it appears the market is eager to see the company launch commercial services. In fact, smart investors know that rushing into stocks is rarely a smart move. Instead — as is the case with Archer — investors should thoroughly investigate the company, including a possible SWOT analysis, to see if an investment is right for them.

Fortunately for investors, even if Archer doesn’t seem like the right stock to take flight with, there are plenty of other compelling growth opportunities.