Trump Orders Spark 23% Jump in Joby, 27% in Archer Stocks

Donald Trump's recent administrative orders have ignited a significant surge in the electric vertical takeoff and landing (eVTOL) sector, with industry leaders Joby Aviation and Archer Aviation experiencing substantial stock price increases. The orders focus on enhancing U.S. capabilities in the drone and eVTOL sectors, aiming to compete more effectively with global rivals. This strategic move has catalyzed a wave of optimism within the industry, driving up the stock prices of key players.

Joby Aviation, a pioneer in the "low-altitude economy," has seen its stock price rise by 23% within a week. The company is accelerating its international market expansion, with plans to commercialize its services in the United Arab Emirates and has already completed a demonstration flight in Japan. Toyota's cumulative investment of nearly 900 million dollars in Joby Aviation underscores the company's strategic importance and potential for growth.

Archer Aviation, another leading eVTOL developer, has witnessed a 27% increase in its stock price. Archer's Midnight eVTOL aircraft is nearing completion of the third stage of the U.S. Federal Aviation Administration's (FAA) four-stage certification process. The company is on track to deliver its first Midnight aircraft to the U.S. Air Force by August 2024, under a contract valued at 142 million dollars. This development highlights Archer's commitment to advancing eVTOL technology and securing significant military contracts.

The administrative orders signed by Trump are part of a broader initiative to bolster U.S. manufacturing and innovation, reducing reliance on foreign competitors. This push is expected to accelerate the development and deployment of eVTOL technology, which has the potential to revolutionize urban air mobility and logistics. The orders also emphasize the importance of integrating advanced technologies, such as artificial intelligence and autonomous systems, into eVTOL platforms.

The surge in stock prices for Joby Aviation and Archer Aviation reflects investor confidence in the future of the eVTOL sector. As the U.S. government continues to support the development of this technology, companies in the industry are poised to benefit from increased investment and market opportunities. The administrative orders signed by Trump are a clear indication of the government's commitment to fostering innovation and leadership in the eVTOL sector, positioning the U.S. as a global leader in this emerging field.

The administrative orders signed by Trump focus on two key areas: enhancing U.S. capabilities in drone manufacturing and defense, and supporting five key eVTOL projects to accelerate the commercialization of electric vertical takeoff and landing aircraft. This strategic initiative is driven by the need to catch up with competitors in the drone sector, particularly in light of recent developments such as Ukraine's use of drones against Russia.

The orders have directly impacted the stock prices of leading eVTOL companies. Joby Aviation's stock price increased by 23% to 9 dollars, while Archer Aviation's stock price surged by 27% to 11.85 dollars. This surge is also fueled by investor optimism about the industry's future, as many eVTOL companies that went public through SPACs in 2020 have since consolidated, leaving only a few well-funded players like Joby and Archer.

According to Canaccord Genuity, Archer Aviation has 1 billion dollars in cash reserves, while Joby Aviation has secured 1 billion dollars in funding, including a recent 250 million dollars investment from Toyota. This financial backing supports their substantial research and development expenditures, aiming for FAA certification by 2026. Analysts predict that both companies have significant upside potential, with Joby's target price set at 12 dollars and Archer's at 13.50 dollars, indicating potential gains of 33% and 14% respectively from their current prices.

The commercialization of eVTOL technology is imminent, with plans for initial operations in the United Arab Emirates and eventual expansion to major U.S. cities like New York and Los Angeles. Both Joby and Archer have established strategic partnerships with major airlines, including United Airlines and Delta Air Lines, to provide air taxi services once they receive FAA certification. These eVTOL aircraft feature innovative designs, capable of vertical takeoff and landing like helicopters, and efficient cruising like airplanes, with a top speed of 200 miles per hour and zero emissions.