Archer Aviation Surges 13.65% as Technical Milestones Osaka Partnership Boost Investor Confidence

Archer Aviation (ACHR) surged 13.65% on October 3, 2025, marking a three-day rally of 20.77% and reaching its highest level since October 2025. The stock’s intraday gain of 13.85% reflected renewed investor confidence in the eVTOL developer’s progress toward commercialization.

The momentum was driven by recent technical milestones, including the Midnight aircraft’s 7,000-foot altitude test and a 55-mile piloted flight, underscoring regulatory readiness for FAA certification. Strategic partnerships also bolstered sentiment, particularly the Osaka air taxi collaboration with a Japanese airline consortium, which signals international market expansion. Analysts at Cantor Fitzgerald and Canaccord reaffirmed bullish ratings, citing the company’s operational advancements and sector positioning.

Institutional activity further supported the rally, with Northern Trust, Alpine Global Management, and Swiss National Bank increasing holdings. Vanguard’s addition of 3.249 million shares highlighted growing institutional backing, though some investors like Invesco trimmed stakes. Valuation metrics, including a price-to-book ratio of 3.9x and a DCF fair value estimate of $29.95, suggested the stock trades at a significant discount to intrinsic value, though profitability remains elusive amid a $206 million net loss in Q2 2025.

Market volatility persisted due to mixed sentiment around regulatory timelines and commercial risks. While the FAA’s urban air taxi pilot program positions Archer favorably, competitors like Joby Aviation and Vertical Aerospace intensify sector competition. Despite cash reserves of $1.73 billion, ongoing R&D costs and lack of revenue underscore long-term challenges. Investor psychology remains speculative, with bets on eVTOL adoption balancing caution over unproven market demand.