Air taxi company Archer unveils attack rotorcraft developed with Anduril; shares soar

Shares of air taxi maker Archer Aviation soared around 20% on Monday and continued to rise in premarket trading on Tuesday. The rally came after the company unveiled an attack rotorcraft developed in partnership with defense technology company Anduril.

Archer shares jumped around 20% on the New York Stock Exchange on Monday to $5.30 per share. In premarket trading on Tuesday, the stock gained more than 2%.

The rotorcraft, called Thunder, is based on a dual-use platform suitable for both military aircraft and commercial transportation. According to Archer, its greater range and endurance versus traditional rotorcraft represent a step forward for vertical takeoff and landing (VTOL) technology. The company has already conducted test flights using full-scale surrogate aircraft, while Thunder’s first flight is planned for 2027.

Archer is best known as a developer of electric VTOL taxis. The company is currently focused on securing type certification for its aircraft and launching flights by the 2028 Olympic Games in Los Angeles, Archer founder and CEO Adam Goldstein told CNBC on Monday.

In March, the White House selected Archer and its rival Joby Aviation to participate in an air taxi pilot program, which will allow Joby to begin operations in 10 U.S. states and Archer in three. “This is really critical to gaining the trust of the public and the trust of the regulators that will ultimately lead to our certification,” Goldstein told CNBC. “That step is going to be hugely critical in order to allow us to meet those timelines.”

Archer entered the defense sector in December 2024, launching a dedicated division and partnering with Anduril. “I believe the opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected,” Goldstein said at the time.

Goldstein described defense as a “huge market” for Archer amid rising geopolitical tensions globally. Military aircraft do not require the same certification process as those intended for commercial use, he noted. “The applications we can bring in the defense world are quite impressive and very much needed for the warfighter,” Goldstein added.

JPMorgan has estimated that the market for eVTOL aircraft could reach $1 trillion by 2040, or as much as $3 trillion when cargo and military operations are included. Archer’s British rival Vertical has also announced plans to enter the defense market.

Archer shares have fallen around 30% year to date. Wall Street nevertheless remains broadly upbeat on the stock, with six “buy” calls versus three “hold” ratings, according to MarketWatch data. The average target price of $10.50 per share implies 98% upside from the Monday closing price.