HomeBusinessIs Archer Aviation a one-time buying opportunity in 2025?

Is Archer Aviation a one-time buying opportunity in 2025?

According to third-party estimates, the average driver in the United States spends 54 hours a year stuck in traffic. Multiplied by a total of 243 million drivers, that amounts to 13 billion cumulative hours spent in traffic each year in the United States. Globally, this figure is probably above 100 billion hours. Time, money and quality of life are lost when you are sitting in your car on the road.

What if there was a company that wanted to help solve this problem? That’s the purpose of Sagittarius Aviation (NYSE: ACHR) and other electric vertical take-off taxi (eVTOL) companies. With an innovative product and a clear goal (to help solve the traffic problem), there is a lot of potential for these new air taxi companies. Does that make Archer Aviation a once-in-a-decade buying opportunity in 2025?

An eVTOL is an innovative type of vehicle that is similar to a helicopter, but with some important improvements. First, eVTOLs are much quieter than helicopters, making them easier to tolerate in neighborhoods and cities. Secondly, they are fully electric and use tilt propeller technology to make them cleaner and more energy efficient.

Archer Aviation is building an eVTOL to help people travel faster in busy urban areas. For example, it highlights the journey from downtown Manhattan to Newark airport, which can sometimes take more than an hour by car. Once the company’s eVTOL point-to-point air taxi network is built, the company says this trip will take less than 10 minutes.

This can be a huge time saver, not only for the riders, but also for other people on the road. For every person taking an eVTOL trip from Manhattan to Newark, that’s one less car on the road. It’s likely that it will cost a pretty penny for this air taxi ride (and it will need to for the network to make a profit), but I think there will be plenty of demand for the service. Only the wealthiest people have the opportunity to skip the typical airport trip involving helicopters and private jets.

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There are plenty of people with enough wealth who are willing to pay hundreds of dollars for an air taxi ride if it means a 10-minute flight to the airport, at least in wealthy cities around the world. This is the passenger segment that Archer Aviation is targeting, with plans to open networks in places like Japan, India, the Middle East and the United States. According to management, the first point-to-point network will be operational by the end of this year.

Not only Archer Aviation sees electric air taxis as a modern solution to traffic problems. There are eight other eVTOL stocks currently trading, and this only counts those that are publicly listed. Fortunately for Archer Aviation, it is one of the largest and has a lot of financial backing. It’s also about to launch a service (hopefully sometime in 2025).

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