Archer Aviation: A Prominent Player in the Emerging Flying Taxi Market

Archer Aviation is a company working on electric flying taxis, backed by United Airlines and Stellantis. Its flagship aircraft, Midnight, can carry four passengers plus a pilot, and Archer aims to generate recurring revenue by operating an air taxi network. While the company has not yet reached commercialization, it has secured FAA certification, formed partnerships with global leaders, and gained military validation, reducing risks and showing momentum toward commercialization.

San Carlos, CA – October 2, 2025 – Joby Aviation (NYSE: JOBY), a pioneer in the electric vertical take-off and landing (eVTOL) aircraft sector, has seen its stock price skyrocket over the past year, reflecting surging investor confidence driven by a series of strategic deals and remarkable progress with the Federal Aviation Administration (FAA). The company's innovative approach to urban air mobility is rapidly transitioning from conceptual design to tangible reality, positioning it as a frontrunner in the nascent air taxi market. This impressive momentum has not only boosted Joby's valuation but also signaled a pivotal moment for the broader eVTOL industry, hinting at the imminent commercialization of air travel that was once confined to science fiction.

The past 12-18 months have been transformative for Joby Aviation, marked by a series of strategic maneuvers and regulatory successes that have directly fueled its stock appreciation. A standout event was the acquisition of Blade Air Mobility's passenger transportation business in August 2025. This audacious move, valued at up to $125 million, provides Joby with immediate access to critical ground infrastructure, including dedicated terminals in high-demand urban markets like New York City, and a pre-existing customer base familiar with urban air mobility services. This acquisition is widely seen by analysts as a "massive de-risking" step for Joby's commercial launch, effectively fast-tracking its operational readiness Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

In a move diversifying its revenue streams, Joby also announced a partnership with defense contractor L3Harris Technologies (NASDAQ: LHX) in August 2025. This collaboration aims to develop a defense-grade hybrid eVTOL aircraft for military applications, with flight testing anticipated to commence as early as Fall 2025. This deal not only opens a significant military market for Joby but also validates its technological prowess by adapting its core capabilities for demanding defense requirements Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

These developments were bolstered by a substantial infusion of over $1 billion in additional funding and commitments in late 2024, including anticipated investments totaling $500 million from Toyota (NYSE: TM), providing a robust financial runway for continued development and commercialization. Furthermore, the acquisition of Xwing's Autonomy Division in June 2024 brought in valuable autonomous flight technology, which is being integrated into future aircraft designs, enhancing safety and efficiency Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

On the regulatory front, Joby's progress with the FAA has been equally impressive. By February 2025, the company reported record advancements on the fourth of the five stages required for FAA certification, with 70% of Stage 4 completed by Q2 2025. The company anticipates Type Inspection Authorization (TIA) flight testing to begin within the next 12 months, with FAA test pilots already evaluating the aircraft's flight deck in a simulator in January 2025 Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

Joby is currently preparing for the final assembly of its first conforming aircraft, specifically designed for TIA flight tests, with company pilots expected to begin flying it in 2025, followed closely by FAA pilots for direct evaluation. A significant milestone was reached in September 2025 when Joby joined the newly announced FAA-led eVTOL Integration Pilot Program (eIPP), a clear signal from regulators to accelerate the deployment of eVTOL aircraft and air taxi services, potentially allowing limited operations even before full Type Certification Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

These consistent regulatory advancements, coupled with the delivery of its first eVTOL air taxi to Edwards Air Force Base in September 2023 (followed by a second in Q4 2024) under a $131 million contract with the U.S. Air Force, have collectively fueled investor optimism, propelling Joby's stock to an all-time high of approximately $20.95 in early August 2025 Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].

Archer Aviation, another company working on electric flying taxis, is also making strides in the eVTOL sector. Backed by United Airlines and Stellantis, Archer Aviation's flagship aircraft, Midnight, can carry four passengers plus a pilot and aims to generate recurring revenue by operating an air taxi network. While Archer has not yet reached commercialization, it has secured FAA certification, formed partnerships with global leaders, and gained military validation, reducing risks and showing momentum toward commercialization .

The success of Joby and Archer Aviation is poised to create both significant winners and potential losers across the aerospace, defense, and urban transportation sectors. Among the clear winners are Joby Aviation and Archer Aviation themselves, which benefit directly from increased market valuation, enhanced brand credibility, and a strengthened position for their commercial launch. Their strategic partners, such as Delta Air Lines and Toyota, stand to gain a first-mover advantage in offering premium, rapid air taxi services to their customers, potentially differentiating their travel experience significantly. The partnership between L3Harris Technologies and Joby creates a new, independent revenue stream for L3Harris in the defense sector, while also allowing them to integrate cutting-edge eVTOL technology into their portfolio.

Conversely, other eVTOL developers, particularly those lagging in certification or commercialization strategies, might face increased competitive pressure. Companies like Archer Aviation, Lilium N.V. (NASDAQ: LILM), and Vertical Aerospace (NYSE: EVTL), while pursuing their own paths, will now contend with a Joby that has secured key infrastructure, substantial funding, and significant regulatory milestones.

The defense sector, while gaining a new technology provider in Joby, might see a shift in investment priorities as hybrid eVTOL solutions prove their utility. Furthermore, traditional aircraft manufacturers who have been slow to enter the eVTOL space may find themselves playing catch-up in a rapidly evolving market.

The overall impact will likely be a dynamic industry where innovation and strategic partnerships dictate success, pushing less agile or well-funded players to the sidelines.

Joby's breakthroughs extend far beyond its balance sheet, signifying a profound shift in broader industry trends and the future of urban air mobility. This event underscores the accelerating pace of innovation in the advanced air mobility (AAM) sector, validating the long-held vision of electric air taxis as a viable mode of transportation. Joby's progress sets a high bar for competitors and demonstrates that eVTOL technology is maturing rapidly, moving from experimental phases to practical application.

The strategic acquisition of Blade's passenger business highlights a crucial industry trend: the integration of air services with existing ground infrastructure and customer networks is paramount for successful commercialization, suggesting that future success in AAM will require more than just a flying vehicle – it will demand a comprehensive ecosystem.

The regulatory implications of Joby's FAA advancements are particularly significant. The company's consistent progress through the FAA's rigorous certification stages, including the anticipated TIA flight testing and participation in the eIPP, provides a crucial roadmap for the entire eVTOL industry. It demonstrates that the FAA is actively engaged in developing the necessary frameworks for integrating these novel aircraft into the national airspace safely and efficiently. This proactive regulatory engagement, coupled with Joby's pursuit of international certifications in Australia, the UAE, and Japan, signals a global trend towards establishing harmonized standards for eVTOL operations. The eIPP, in particular, suggests a willingness from regulators to facilitate limited early operations, which could accelerate public acceptance and infrastructure development.

Historically, the introduction of new modes of transportation, from commercial aviation to ride-sharing, has always faced regulatory hurdles and public skepticism. Joby's journey echoes the early days of commercial aviation, where pioneering companies worked hand-in-hand with nascent regulatory bodies to establish safety standards and operational protocols. The current momentum around eVTOLs, spearheaded by Joby, suggests that this time, the technological advancements are meeting regulatory readiness, creating a powerful synergy that could fundamentally reshape urban and regional travel, potentially easing congestion and reducing emissions in metropolitan areas.

The ripple effects will likely include increased investment in charging infrastructure, air traffic management systems, and urban planning tailored for vertiports.

Looking ahead, Joby Aviation is on the cusp of its most critical phase: commercial launch. The short-term focus remains firmly on completing FAA Type Certification, with TIA flight testing and the final assembly of its conforming aircraft being paramount. Joby has reiterated its target for commercialization in 2025 or the first half of 2026, with plans to deliver an aircraft to Dubai by mid-2025 for flight testing and aiming to carry its first passengers in late 2025 or early 2026 Joby Aviation Soars: Game-Changing Deals and FAA Milestones Propel Stock to New Heights^[1].