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Trump's Order Lifts Archer Aviation Stock: More Upside Ahead?

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Key Takeaways

  • Trump's June 6 executive order aims to boost U.S. dominance in unmanned and eVTOL aircraft systems.
  • ACHR's shares rose 11.7% post-announcement, outperforming the industry's 0.4% return through June 10.
  • Archer began piloting Midnight test flights, showing both vertical and conventional takeoff capabilities.

U.S. President Donald Trump signed an executive order on June 6, 2025, primarily aimed at boosting America’s dominance in unmanned aircraft systems, including the integration of an electric Vertical Takeoff and Landing (eVTOL) pilot program. Consequently, Archer Aviation Inc.’s (ACHR - Free Report) share price rose a solid 11.7% (as of June 10) since the announcement, outperforming its industry’s return of 0.4%. Notably, the company is currently working through certification with the Federal Aviation Administration (“FAA”) and other global aviation authorities to commercialize its Midnight eVTOL aircraft.

ACHR’s Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Interestingly, the eVTOL industry has gained significant traction in recent years, driven by worsening urban congestion, the push for sustainable transport and advancements in electric aviation technology. Archer Aviation, as a key player in this emerging sector, has remained in the spotlight by virtue of its strategic partnerships (like those with United Airlines, Stellantis) and progress toward FAA certification. 

In a recent development, Archer has launched the next phase of flight testing for Midnight, featuring piloted flights that demonstrated both vertical and conventional take-off and landing capabilities. Against this backdrop, the latest policy push arising from Trump’s executive order is expected to ease regulatory pathways and accelerate industry adoption of eVTOL aircraft, thereby providing a meaningful boost to Archer in its progress toward commercialization.

The potential upside reflected in ACHR’s price target further supports our thesis. Based on short-term price targets provided by nine analysts, Archer Aviation is currently trading 6.6% below its average Zacks price target.

Zacks Investment Research
Image Source: Zacks Investment Research

Other eVTOL Stocks to Gain From the Order

The aforementioned executive orders have also boosted the share price of other eVTOL stocks like Joby Aviation Inc. (JOBY - Free Report) and Vertical Aerospace (EVTL - Free Report) over the past few days. Shares of JOBY soared 16.3%, while those of EVTL surged 7.2% during June 6-10. 

Santa Cruz-based Joby Aviation has been developing an all-eVTOL air taxi since its inception and is actively pursuing FAA certification. It is also working with regulators in the UK, Japan, South Korea, Australia and the UAE to expand globally. 

Meanwhile, England-based Vertical Aerospace is progressing with certification of its flagship VX4 aircraft through both the UK Civil Aviation Authority and the U.S. FAA. Last month, the company announced plans to develop a hybrid-eVTOL variant of the VX4 to extend range and payload capacity. The hybrid model aims to serve defense, logistics, and air ambulance sectors, where current eVTOL platforms fall short in endurance and load capability.

The Zacks Rundown for ACHR

From a valuation standpoint, ACHR is currently trading at a trailing 12-month price-to-book (P/B) multiple of 6.18X, a roughly 4% premium when stacked up with the industry average of 5.94X.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ACHR’s loss estimates for 2025 and 2026 have improved over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

ACHR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
 


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Joby Aviation, Inc. (JOBY) - free report >>

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