Archer Aviation Selected by Serbia as Preferred eVTOL Partner for EXPO 2027
Archer Aviation's stock fell 5.11% as it crossed below the 20-day SMA amid positive market conditions.
The company has been selected by the Republic of Serbia as its preferred eVTOL air taxi partner, planning to showcase its Midnight aircraft at the 2027 Belgrade Expo. This partnership includes a potential purchase agreement for up to 25 Midnight aircraft, contingent upon legal frameworks, reflecting Serbia's commitment to innovative transportation solutions. This strategic collaboration not only enhances Archer's market presence in Europe but also drives technological innovation in the electric aviation sector.
Despite the stock's decline, the partnership with Serbia could provide significant growth opportunities for Archer Aviation, positioning it favorably in the expanding urban air mobility market.
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- International Expansion Strategy: Archer Aviation Inc. (NYSE:ACHR) has formed a strategic partnership with the Government of Serbia, establishing the country as a key hub for electric air taxis in Europe, demonstrating its commitment and potential for international market expansion.
- Aircraft Purchase Option: Under the agreement, Serbia has appointed Archer as its preferred eVTOL partner, acquiring the option to purchase up to 25 Midnight aircraft, reflecting strong market demand for Archer's technology.
- Official EXPO 2027 Partnership: Archer will serve as the official air taxi provider for the EXPO 2027 in Belgrade, expected to showcase its advanced air mobility solutions to millions of international visitors, thereby enhancing its brand visibility.
- Industrialization Strategic Discussions: The partnership also includes strategic discussions on industrialization focusing on rare earth magnets and critical minerals for eVTOL batteries, indicating Archer's forward-looking approach in technology and resource integration.
- Stock Performance Decline: Since its debut on the NYSE in September 2021, Archer Aviation's shares have plummeted by 26%, indicating market concerns about its future prospects, which could adversely affect investor confidence and the company's ability to raise funds.
- BlackRock Increases Stake: According to a recent 13G filing, BlackRock, the world's largest asset manager, has raised its ownership in Archer to 8.1%, which, while not indicating direct operational influence, shows sustained interest in the stock.
- Investment Attractiveness Analysis: Archer is viewed as an asymmetric investment; despite facing regulatory approval and capital management risks, partnerships with high-profile companies like Palantir and Nvidia may provide support for future growth, attracting strategic investors.
- Market Expectations and Risks: Analysts set a target price of about $12 for Archer, suggesting a potential upside of 71% from current levels, but due to the lack of actual business results, investors should approach with caution and avoid blindly following BlackRock's investment decisions.
- Archer Aviation Outlook: Archer Aviation's stock has plummeted over 50% since peaking last October, yet analysts project revenues could soar to $1.753 billion by 2029, indicating significant potential in the eVTOL market despite currently generating no revenue.
- Snap's User Base: Snap boasts 943 million monthly active users, and while profitability remains a challenge, revenue growth is expected to accelerate to 15% by 2026, highlighting its appeal among the young demographic and market potential.
- Opendoor's Market Challenges: As a leading home flipper, Opendoor is grappling with high mortgage rates and economic uncertainty, with U.S. existing home sales barely exceeding 4 million in 2025, marking the lowest in 30 years, leading to a third consecutive year of declining revenues.
- Future Prospects: Despite current challenges, Opendoor's business is poised for significant growth as the home resale market recovers, suggesting that investors should remain patient to capitalize on potential market rebounds.
- Revenue Growth Expectations: Archer Aviation is projected to approach nearly $1 billion in annual revenue by 2028, despite currently being pre-revenue, which would significantly enhance its market valuation, currently at $5.3 billion with a reasonable price-to-revenue ratio of 3 times.
- Market Competition Dynamics: Archer's largest competitor, Joby Aviation, recently saw its stock plummet due to efforts to raise $1.2 billion, resulting in an 11% decline in Archer's stock over the past week, highlighting the high volatility and speculative nature of the eVTOL market.
- Strategic Partnership Opportunities: Archer has secured a deal to serve as the official air taxi provider for the 2028 Olympic Games in Los Angeles and acquired a small regional airport near LAX to ensure operational readiness during this major event, which will enhance its brand visibility and market penetration.
- Snap's Market Potential: Snap boasts 943 million monthly active users, and despite a 39% drop in stock price over the past year, revenue is expected to accelerate by 15% in 2026, demonstrating its strong appeal among younger demographics and future profitability potential.
- Market Potential: The eVTOL market is projected to reach $27 billion by 2034, attracting significant investor interest, particularly in Archer Aviation, which has seen its stock price surge 186% over the past three years, reflecting strong market confidence in its future.
- Strong Liquidity but No Revenue: Archer currently boasts over $2 billion in liquidity, although a recent $650 million capital raise diluted shareholder value, and the company has yet to generate any revenue, posing a significant challenge to its profitability.
- Widening Operational Losses: In Q3 2025, Archer reported a GAAP net loss of nearly $130 million, a 13% year-over-year increase, while operating expenses surged 43% to nearly $175 million, indicating pressure on cost management.
- High Market Uncertainty: Although Archer plans to launch its air taxi service in Abu Dhabi, the lack of revenue and uncertainty regarding market demand present high speculative risks for investors, especially in a competitive and unproven eVTOL market.
- Market Competition Landscape: While Joby Aviation and Archer Aviation are garnering significant attention in the electric vertical takeoff and landing (eVTOL) space, Boeing's investment through its subsidiary Wisk poses a greater threat, particularly as its fully autonomous Generation 6 aircraft could directly compete with Joby's air taxi business.
- Business Model Differences: Archer operates an asset-light model focusing on becoming an original equipment manufacturer (OEM), while both Joby and Wisk aim to provide transportation services; Wisk's fully autonomous design may offer cost advantages but faces more complex FAA certification hurdles.
- Complex Certification Process: Wisk is not expected to enter commercial service until at least 2030, and the complexity of the certification process could exert financial pressure on Boeing, especially as it needs to fund a new narrow-body aircraft for the next generation.
- Capital Investment Requirements: Boeing's proposed Automated Flight Rules (AFR) necessitate massive capital investments and FAA adoption, and if it fails to generate meaningful cash flow and reduce debt in the coming years, its competitiveness in the eVTOL sector may be compromised.











