Which company offers a more promising investment opportunity between Joby and Archer Aviation by 2025?
Over the past few years, companies like Tesla and Rivian Automotive have been synonymous with electric vehicles. But a new breed of electric transport has been gaining attention - electric vertical take-off and landing (eVTOL) aircraft. Companies such as Joby Aviation and Archer Aviation are spearheading this movement, offering an alternative to traditional modes of transportation in densely populated areas.
If anything, building electric vehicles is a lengthy and costly endeavor. Joby Aviation, for instance, has invested heavily in developing its aircraft prototypes, with Toyota Motor and Delta Air Lines among its major investors. Toyota has pledged $500 million to Joby, bringing its total investment to nearly $1 billion. Joby's other notable backers include Intel and Uber, with potential partnership opportunities in city mapping and routing.
Archer Aviation, on the other hand, has garnered support from United Airlines and Stellantis. The company boasts a purchase order book in excess of $6 billion, thanks to its collaborations with major airlines, automakers, and the U.S. military. Archer's aircraft have also attracted interest from the Defense Department, and it has recently formed a partnership with Anduril, a company specializing in autonomous systems for military applications.
As we examine the financial profiles of both companies, it's worth noting that Wall Street expects Archer to generate more than double Joby's revenue next year. Yet, Joby's market cap is significantly higher than Archer's. This discrepancy could imply that Archer is on a faster commercialization track, or that Joby is being overvalued.
Regardless of which stock you favor between Joby and Archer, both companies represent exciting speculative opportunities in the rapidly evolving eVTOL industry. Analyzing their financials and partnerships can help you make a more informed decision for your portfolio.
Investing in the eVTOL industry offers potential returns, as demonstrated by Toyota's $500 million investment in Joby Aviation, bringing its total investment to almost $1 billion. Finance plays a crucial role in the development of these innovative aircraft, with companies like Joby and Archer relying on investments from major players in the finance and automotive sectors.
