Joby and Archer Each Burn Roughly $200 Million a Quarter. Here's Which One Runs Out of Cash First
2026-09-30 02:15
•Reuben Gregg Brewer •The Motley Fool
••• ••••• Axe Cap view
Joby vs Archer: Who Burns Cash Faster and Why It Matters
Two electric air taxi pioneers are burning big cash, but their survival timelines and partnerships diverge.
Joby and Archer are both in the red, burning about $200 million each quarter as they develop electric vertical takeoff and landing (eVTOL) tech. Joby’s bigger $2.2 billion cash pile gives it roughly two years to prove its model, while Archer’s $1.5 billion funding lasts about a year. That might sound like plenty, but remember: startups burn through cash fast, and they only succeed if they continually attract fresh funding before revenue streams mature. Both firms have heavyweight aviation partners—Virgin Atlantic and Delta for Joby, Boeing for Archer—which is a strong signal investors respect. However, if those partnerships falter or capital markets tighten, even these alliances won’t save them. Neither is listed on the JSE, so South African investors are best placed watching USD/ZAR as a proxy because a weaker rand would make funding foreign capital more expensive. Despite the buzz, I see these stocks as speculative bets on tech and capital markets continuing to play ball. this is just our opinion and not financial advice
Avoid direct exposure to Joby or Archer at this stage since they burn cash heavily and are US-listed without local hedge. Instead, watch the USD/ZAR closely for funding risk signals—if the rand weakens sharply, these startups’ funding costs could spike, creating knock-on effects in risk appetite.
- USD/ZAR
- Sharp rand depreciation increasing foreign funding costs
- Loss of partner confidence or tightening capital markets
5/10
Joby Aviation and Archer Aviation are both burning through approximately $200 million per quarter as they develop eVTOL technology. Joby has $2.2 billion in cash reserves and could sustain operations for roughly two years at current burn rates, while Archer has $1.5 billion and could last just over a year. Both companies are making technological progress and have partnerships with major aviation companies, which should help them raise additional capital before running out of cash.
Our take is based on reporting first published by The Motley Fool.