Archer Aviation (ACHR) Is Down 5.3% After Striking eVTOL Deal With Korean Air – What's Changed

• Korean Air and Archer Aviation announced in October 2025 an agreement to commercialize Archer's Midnight eVTOL aircraft in Korea, starting with government applications and including plans for Korean Air to purchase up to 100 units.
• This collaboration highlights growing international demand for Archer's technology and positions Korea at the forefront of advanced urban air mobility adoption.
• We'll examine how this major Korean Air partnership supports Archer's international expansion ambitions and its evolving investment narrative.

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What Is Archer Aviation's Investment Narrative?

For investors considering Archer Aviation, the big-picture belief rests on the future of electric vertical takeoff and landing (eVTOL) as a mainstream mode of transportation and Archer’s potential to be a global industry leader despite currently generating no revenue and posting substantial net losses. The recent announcement of Korean Air’s intentions to potentially purchase up to 100 Midnight aircraft meaningfully elevates Archer’s commercial credibility and could accelerate its push into international markets. This agreement, while still subject to execution risk and regulatory hurdles, fits neatly into Archer’s narrative of rapid expansion and growing interest from major partners. That said, it may have limited immediate impact on near-term financial catalysts such as revenue generation or profitability. Investor enthusiasm has fueled share price gains, but the company’s need to prove manufacturing scale, secure certification, and manage a rising cost base remain the dominant short-term drivers and risks. New orders can support sentiment, but those core challenges have not disappeared. On the flip side, certification and operational delays could have major consequences for future growth.

Despite retreating, Archer Aviation's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Private investors in the Simply Wall St Community submitted 52 fair value estimates ranging from US$2.97 to US$29.72 per share, encompassing a wide spectrum of forecasts for Archer Aviation’s prospects. While some see significant upside, others flag caution, aligning with the ongoing execution and funding risks discussed above. Explore these divergent viewpoints to get a fuller picture of Archer’s journey ahead.

Explore 52 other fair value estimates on Archer Aviation - why the stock might be worth less than half the current price!

Build Your Own Archer Aviation Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Archer Aviation research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Archer Aviation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Archer Aviation's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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