On Wednesday, Archer Aviation (ACHR.N) announced that it has received a certificate from the U.S. Federal Aviation Administration (FAA) to begin commercial operations, positioning it as the second electric air taxi manufacturer to reach this significant achievement.
Following the announcement, shares of the Santa Clara, California-based company climbed by 3% in the morning trading session, buoyed by the achievement of the Part 135 Certification.
While Archer’s premier electric vertical takeoff and landing (eVTOL) aircraft, named “Midnight,” is still awaiting a Type Certification from the FAA—which confirms that an aircraft adheres to the necessary design and safety guidelines—the company remains optimistic.
Supported by major entities like Stellantis (STLAM.MI), Boeing (BA.N), and United Airlines (UAL.O), Archer plans to utilize conventional aircraft to enhance its “systems and procedures.”
Its industry peer, Joby Aviation (JOBY.N), had previously received the Part 135 Certification in 2022.
Archer is part of a group of eVTOL manufacturers aiming to transform urban mobility in densely populated areas through short-haul air travel.
Despite facing several hurdles including regulatory approvals and technological issues like battery density, which have impacted the financial performance of eVTOL companies—Archer’s shares have dropped 47% this year, and Joby Aviation has seen a 26.7% decline—large corporations continue to invest heavily in the sector. This year, Stellantis notably increased its stake in Archer by about 8.3 million shares, making it the largest shareholder, according to LSEG data.
