1 eVTOL Stock to Buy, and 1 to Avoid
2026-07-21 18:15
•Jeff Siegel •The Motley Fool
•• •••••• Axe Capital view
One eVTOL Stock to Favor, One to Skip
Joby Aviation leads the eVTOL race with solid progress and partnerships, while Archer Aviation carries too much execution risk.
The electric vertical takeoff and landing (eVTOL) sector promises to revolutionize urban transport, but not all players are equal. Joby Aviation stands out with over 50,000 test flight miles and a production aircraft already conforming to FAA standards—rare progress in this space. Big names like Delta and Virgin Atlantic backing Joby add credibility beyond shiny headlines. With over $1 billion in cash, Joby is well-positioned to navigate certification and early commercial scaling. Meanwhile, Archer Aviation looks like a gamble. Its valuation prices in smooth certification and large-scale manufacturing, but it lacks meaningful commercial revenue and relies heavily on partnerships instead of direct control. It also faces dilution risks if fundraising stretches out. For rand-based investors, this matters because exposure to USD strength or weakness can swing returns materially, given these stocks trade in dollars. I’d lean into Joby if you want eVTOL exposure, but keep position sizes sensible—certification is not guaranteed. If Archer nails it, fine, but that’s a big if. this is just my opinion and not financial advice
Buy Joby Aviation selectively for exposure to eVTOL innovation via USD assets, while avoiding Archer given its high execution risk and uncertain path. Keep an eye on the USD/ZAR exchange rate for additional currency risk management.
- JOBY
- ACHR
- USD/ZAR
- FAA certification delays or failures
- Weakening USD against ZAR affecting returns
6/10
Joby Aviation is recommended as the stronger eVTOL investment due to its advanced FAA certification progress, 50,000+ test flight miles, strategic partnerships with Delta and Virgin Atlantic, and strong cash position of $1.1 billion. Archer Aviation is advised to be avoided despite high-profile partnerships, as much of its valuation assumes successful execution and it faces significant risks in certification, manufacturing scaling, and commercialization.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Jeff Siegel
Categories: Equities, Earnings
Tickers: JOBY, JOBY.WS, ACHR, ACHR.WS, DAL, STLA
Sentiment: Mixed - Leading certification progress with 50,000+ test flight miles, FAA-conforming production aircraft, established partnerships with Delta Air Lines and Virgin Atlantic, international expansion in Japan and UAE, strong balance sheet with $1.1 billion in cash, and direct control over operations positioning it as the strongest competitor in the eVTOL market. Valuation already assumes successful execution with significant execution risks remaining; lacks meaningful commercial revenue; depends on FAA certification, manufacturing scale-up, and customer adoption; relies heavily on partners rather than direct operations; faces potential shareholder dilution from additional fundraising if delays occur.
Keywords: eVTOL, electric vertical takeoff and landing, FAA certification, urban air mobility, aircraft testing, commercial aviation
Insights:
- JOBY: Positive: Leading certification progress with 50,000+ test flight miles, FAA-conforming production aircraft, established partnerships with Delta Air Lines and Virgin Atlantic, international expansion in Japan and UAE, strong balance sheet with $1.1 billion in cash, and direct control over operations positioning it as the strongest competitor in the eVTOL market.
- JOBY.WS: Positive: Leading certification progress with 50,000+ test flight miles, FAA-conforming production aircraft, established partnerships with Delta Air Lines and Virgin Atlantic, international expansion in Japan and UAE, strong balance sheet with $1.1 billion in cash, and direct control over operations positioning it as the strongest competitor in the eVTOL market.
- ACHR: Negative: Valuation already assumes successful execution with significant execution risks remaining; lacks meaningful commercial revenue; depends on FAA certification, manufacturing scale-up, and customer adoption; relies heavily on partners rather than direct operations; faces potential shareholder dilution from additional fundraising if delays occur.
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