Compare Purchases: Archer Aviation versus Joby Aviation
In the rapidly evolving electric vertical takeoff and landing (eVTOL) market, two companies are making waves: Archer Aviation and Joby Aviation. Both companies have distinct bull cases, partnerships, and approaches to potential defense industry exposure.
Bull Cases
Archer Aviation offers near-term regulatory certainty by securing key FAA operational certificates, such as the Part 135 air taxi and Part 145 maintenance certificates. This enables Archer to begin commercial operations immediately after its aircraft receives final approval, accelerating its path to revenue. The company also boasts a diversified revenue stream and an infrastructure-first approach, positioning it for more immediate and stable business launches. With strong pro forma liquidity of approximately $2 billion, Archer Aviation boasts operational stability.
Joby Aviation, on the other hand, holds a technical and production lead, significantly advanced in the FAA’s five-stage aircraft type certification process. This reduces technical risk and supports higher long-term growth potential. Joby Aviation focuses on accelerating production scalability and has a market capitalization around $9.13 billion as of mid-2025, reflecting investor confidence in its technology and flight testing progress. The potential first-mover advantage could yield greater long-term returns due to a head start in scaling and service introduction.
Partnerships
Archer Aviation has secured infrastructure partnerships preparing for commercial operations and has government contracts, including a notable one through an indirect partnership with defense technology company Anduril Industries. Archer supplies engine technology for military autonomous drones without developing the full system, thus gaining indirect defense industry exposure. The company has also inked deals with United Airlines, Abu Dhabi Aviation, and Ethiopian Airlines for early-adoption markets.
Joby Aviation, on the other hand, engages in stronger execution in partnerships related to manufacturing scale and commercialization. The company pursues direct defense contracts, contrasting with Archer’s indirect approach. Joby Aviation relies heavily on partnerships that support rapid production and technical integration.
Potential for Defense Industry Exposure
Archer Aviation gains defense exposure primarily through partnering with defense contractors like Anduril, supplying components such as engines for military autonomous drones, thus entering the defense market indirectly and leveraging existing technologies to fit defense needs. Joby Aviation, on the other hand, aims at direct defense contracts, integrating more fully with defense requirements but with associated risks and benefits of operating directly in that sector.
Summary
Investors face a trade-off between Archer’s near-term stability and infrastructure focus with incremental defense exposure, versus Joby’s technical maturity, production scale, and direct defense ambitions offering higher long-term upside but more execution risk.
For investors interested in defense industry exposure, Archer Aviation may be more appealing. For those less concerned with the defense angle, Joby Aviation may be a preferred choice. Notably, Joby Aviation has partnered with Delta Air Lines to offer airport transfers to its passengers, aiming to foster loyalty among its premium customers. Joby Aviation has also acquired Uber's flying taxi business, Elevate, positioning it to scale up transportation services after certification.
Meanwhile, Archer Aviation, if successful in developing a hybrid eVTOL for defense purposes, could have a sizable opportunity in selling its aircraft to NATO allies, given the current global tensions. The goal for Archer Aviation and Anduril's partnership is to secure a potential program of record from the Department of Defense. Toyota has committed to investing up to $894 million in Joby Aviation, signaling confidence in the company's future.
As the eVTOL market continues to evolve, both Archer Aviation and Joby Aviation are poised to make significant strides, offering investors a range of opportunities based on their individual investment priorities.
- Archer Aviation, through partnerships with defense technology companies like Anduril Industries, is indirectly investing in the defense industry by supplying engine technology for military autonomous drones, leveraging existing technologies to fit defense needs.
- Joby Aviation, on the other hand, is pursuing direct defense contracts, aiming to integrate more fully with defense requirements but with the associated risks and benefits of operating directly in that sector.
- Technology giant Toyota has invested up to $894 million in Joby Aviation, signifying the company's potential in the business and finance sectors, including the electric vertical takeoff and landing (eVTOL) market.
