Motley Fool asks: Is it worth investing in eVTOL aircraft developer Archer on a dip?

Quotes of small-cap air taxi developer Archer Aviation have collapsed nearly a quarter in the past two weeks but, as the Motley Fool argues, have the potential to soar again this year. Risk-tolerant investors now have an opportunity to to buy into the stock before the all-important first commercial flight takes place. Meanwhile, most market participants will probably opt to stay on the sidelines for now. 

Risk-tolerant investors should take a hard look at Archer as long as the share price is below the recent high of $13.30 per share (reached May 16), says the Motley Fool. At the close on Friday, May 30, one share of the company was trading 24% below that, at $10.09. Before the open today, June 2, Archer has edged 0.4% lower, as of this writing.

The company is facing "hugely exciting" opportunities in 2025 as its eVTOL aircraft, Midnight, should make its first commercial flight, the Motley Fool points out. This, the outlet argues, will almost certainly lead to a rise in quotes. 

The company has stated that its Midnight aircraft could allow passengers to replace "one-to-two-hour drives with flights that take 5-15 minutes, potentially saving hours versus sitting in traffic."

But for now, Archer has no revenue, no profits, and no finished and certified product, notes the Motley Fool. For the first quarter, the company reported a net loss of $93.4 million. It still has a long way to go before it gets approval from U.S. regulators: At the end of the first quarter, the company estimated that it was only 15% of the way through the approval process.

Things could be much faster in other countries. In 2025, Archer plans to be the first carrier to launch air taxi services in Abu Dhabi. This will be the first real test of the company's business, writes the Motley Fool. 

A successful launch in the UAE will help assure investors that Archer's long-term plans are feasible and potential customers that air taxi flights are safe, the publication argues. It would likely spur gains in the stock, too: Archer could "easily eclipse" the recent high of $13.30 per share. Investing in Archer is therefore suitable for risk-tolerant investors, while everyone else will probably want to wait for the company to reach a few more milestones, writes the Motley Fool.  

Archer faced pressure from a short-seller campaign in May. Culper Research published a report on May 20 alleging that Archer "over the past 12 months, has systematically misled, deceived, or outright lied to investors about virtually every supposed milestone related to its development and testing of its eVTOL aircraft, Midnight." It believes that Archer’s push for near-term commercialization is "not only premature, but reckless."

On May 21, the day after the report came out, Archer shares fell 4% to $10.82 apiece. 

Since the beginning of the year, Archer is up a slight 3.5%, but over the last 12 months, it has more than tripled. 

Eight Wall Street analysts advise buying Archer ("buys" and "overweights"), while two others advise holding, according to MarketWatch. Their average target price of $11.75 per share implies upside of more than 16% versus the last closing price.