eVTOL Stocks Slide as FAA Certification Delays Push Profitability Further Out for Joby and Archer Aviation
Why It MattersProlonged eVTOL certification timelines delay revenue generation industry-wide, pressuring cash reserves and testing investor patience for capital-intensive electric aircraft ventures.
Shares of electric vertical takeoff and landing companies have fallen sharply as FAA certification timelines slip and expectations for near-term commercial operations recede. Joby Aviation and Archer Aviation both targeted a 2025 launch of commercial passenger operations, but neither has achieved that goal. In February 2024, Joby CEO JoeBen Bevirt said the company's progress kept it on track toward a 2025 commercial launch, including a potential service in Dubai; Joby currently has no commercial passenger operation running in the United States or Dubai and has not yet received FAA type certification. Archer's management told investors at a Barclays conference in May 2024 that commercial operations were also targeted.
Without revenue, both companies continue to burn cash, and further delays may force them to raise additional capital at a time when investor appetite is waning and interest rates remain elevated. Delta Air Lines has partnered with Joby, and United Airlines has partnered with Archer, with airport shuttle services seen as an early revenue stream. United CEO Scott Kirby made negative remarks in March about eVTOLs flying into congested airports, though he said United would keep working on solutions, noting that evolving into congested airspace "is something that's going to take a few more years."
Analysts view FAA certification as the single most important catalyst for both companies, one that would reframe them from cash-burning speculative ventures into growth companies positioned to scale production and improve access to capital markets. Both Joby and Archer have said they continue to make progress toward certification.
