Joby vs. Archer: Which eVTOL Stock Is Better for Your Portfolio?

Key Points

• Joby Aviation shows significant technical maturity with its advanced progress in the Federal Aviation Administration's aircraft certification process.
• Archer Aviation's partnership with a global automaker enhances its path to mass production and provides a clear advantage in manufacturing scalability.
• Both companies are well-funded for upcoming operational phases and are pursuing distinct commercial strategies for their global deployment plans.

The race to redefine urban travel has captured the market's attention, driving shares of leading electric air taxi companies up more than 120% in the past year. This investor excitement is chasing a massive opportunity: building fleets of quiet, all-electric aircraft to soar over traffic-clogged cities. In the United States, two rivals have emerged as the clear front-runners: Joby Aviation NYSE: JOBY and Archer Aviation NYSE: ACHR.

While both companies aim for the same sky, they follow remarkably different flight plans. Their unique approaches to winning regulatory approval, manufacturing at scale, and launching commercially have created two distinct investment cases.

For those looking to invest in the future of transportation, understanding these strategic differences is crucial for determining which stock may be better positioned for takeoff first, thereby earning that company the coveted first-mover advantage.

Joby's Technical Lead vs. Archer's Business Groundwork

No electric vertical take-off and landing (eVTOL) company can generate a single dollar from passenger service without first clearing the rigorous hurdles of the Federal Aviation Administration (FAA). This approval process is the most critical near-term catalyst, and Joby and Archer are tackling it from different angles.

Joby has established a clear, quantifiable lead in the FAA's five-stage aircraft type certification. This is the official approval that declares the aircraft's design to be safe for flight, allowing the company to begin services in the transportation sector. Having completed the first three stages, Joby is now deep into the fourth.

This progress is based on an exhaustive flight test program, which gives the company a deep understanding of its aircraft's performance. For investors, this demonstrated technical progress directly lowers the risk associated with the core technology, a key factor supporting Joby's $9.13 billion market capitalization.

On the other hand, Archer is executing a parallel strategy focused on building the airline before the plane is fully approved. While its aircraft certification is underway, Archer has diligently secured the FAA's operational certificates. This includes a Part 135 certificate to legally operate an air taxi service and a Part 145 certificate to maintain its fleet.

This approach de-risks the business launch, ensuring Archer can begin commercial operations almost immediately after its aircraft receives its final sign-off, potentially accelerating its path to revenue.

Contrasting Production Strategies 

Moving from a single prototype to thousands of production aircraft is a monumental challenge. How you solve this puzzle has major implications for cost, quality, and speed to market.

Joby is tackling this with a vertically integrated model, choosing to design and manufacture most of its key components in-house. This complex effort is supported by its primary partner, automotive giant Toyota NYSE: TM. This is more than an investment, as Toyota's engineers are helping to implement the legendary Toyota Production System, a philosophy renowned for its efficiency and quality.

This path gives Joby immense control over its technology, but requires significant capital investment. Toyota is also helping Joby with this challenge, having recently infused Joby’s balance sheet with $250 million. 

Archer has chosen a different, more capital-efficient route. It has enlisted Stellantis NYSE: STLA, the global automaker behind brands like Jeep and Ram, as its exclusive contract manufacturer. This partnership allows Archer to leverage a world-class manufacturing operation without having to build one from the ground up.

By outsourcing production risk, Archer preserves capital and can focus its resources on design and certification. This strategy may allow for a faster and less expensive production ramp-up, a factor that strongly appeals to many investors.

Commercial Plans and Market Valuations

A great aircraft and a solid production plan are only valuable if they generate revenue. Here, the companies' commercial strategies diverge, and the market's reaction provides a clear picture of how investors value each plan.

Joby is focused on deep execution in a premier launch market. It has already flown piloted aircraft in Dubai and, most importantly, has secured a six-year exclusive agreement to operate the city's air taxi network. This focused approach provides a clear, near-term path to generating significant revenue from a single, high-value region.

Archer is playing a wider game. Its Launch Edition program aims for a diversified global rollout, with initial operations planned for the UAE, Indonesia, and Africa. Beyond passenger service, Archer is creating additional revenue opportunities through its defense division and air cargo initiatives. This spreads risk across multiple markets and industries.

Financially, both companies are well-fortified to fund their ambitious plans. Archer leads the industry with a pro forma liquidity position of around $2 billion, while Joby is also on solid footing with over $1 billion in cash and investments.

The stock market has taken a clear view of these two strategies. As of July 9, 2025, Wall Street analysts have a Moderate Buy rating on Archer, with an average price target of $13.13, implying a potential 25% upside from its current valuation. Joby, with its higher market cap reflecting its technical lead, currently holds a Hold rating and a price target of $9.33.

2 Different Paths to Urban Air Travel Success

For investors, the decision between Joby and Archer is a choice between two compelling, well-managed companies on different strategic paths. An investment in Joby is a bet on proven technical leadership and focused execution in a key launch market.

 An investment in Archer is a bet on a de-risked manufacturing model and a diversified commercial strategy that offers multiple ways to win. While their methods differ, both companies appear strongly positioned to lead the coming transformation in urban air travel.