Key Points
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Archer Aviation stock has lost half its value in 2026.
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The company faces many risks, but none are insurmountable.
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The stock is high-risk, high-reward and not a great fit for every investor.
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Like the up-and-down motions of the aircraft it’s trying to build, Archer Aviation (NYSE: ACHR) has dropped vertically in 2026. It started the year at about $8 a share. It now trades at less than $4.
Of course, no one said this would be easy: Archer is trying to build a business in an industry that is still taking shape. It is also working hard to certify a new type of aircraft — an electric vertical takeoff and landing (eVTOL) craft — whose commercial potential remains largely untested.
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So, down over 50%, is Archer a compelling buy?
For certain investors, maybe. The thing is, Archer is still years away from proving it can turn its electric air taxis into a profitable business. The keyword there is “prove”: We still don’t know how many people will pay to fly across a city, or whether fares will leave much room for profits once maintenance and operation costs become clear. On top of that, we also don’t know how many aircraft Archer can reliably produce, or what their costs will be.
At the same time, these problems aren’t irresolvable. But they will take time to solve, and not every investor will likely have the time horizon — or patience — to remain invested while the uncertainties linger.
So, the long and the short of it: If you want a radically new form of transportation — flying taxis — to replace sitting in a car in traffic, and you can stay invested for a long period, Archer at today’s price might be a compelling buy. But if volatility and the possibility of losing your investment would keep you up at night, this stock is probably worth passing on.
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Steven Porrello has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
