Why Archer Aviation Stock Skyrocketed Last Week

Key Points

• Archer Aviation stock saw big gains in conjunction with news that Joby Aviation had doubled its vehicle production capacity.

• Archer and Joby are competitors, but promising indicators in the eVTOL market often boost both companies valuations.

• Archer stock is also getting a boost from interest surrounding drones for the defense industry.

• 10 stocks we like better than Archer Aviation ›

Archer Aviation (NYSE: ACHR) stock closed out the past week of trading with big gains. At the end of Friday's trading, the electric-vertical-takeoff-and-landing (eVTOL) specialist's share price was up 26.5% from the previous week's market close.

Archer Aviation roared higher following news that its competitor Joby Aviation is scaling up its manufacturing operations. Archer stock also got a boost from rising excitement surrounding drones for the defense industry.

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Archer stock soars on Joby news and drone bets

On July 15, Joby Aviation published a press release announcing that it had doubled its vehicle production capacity at its Marina, California, manufacturing facility. The company also announced that it was ramping up components manufacturing and testing operations at its renovated plant in Dayton, Ohio.

Even though Archer Aviation and Joby Aviation are competitors, the fledgling eVTOL market is still in its infancy and should be able to support multiple winners. At this stage, Joby's progress actually appears to be a bullish indicator for Archer's outlook.

In addition to the Joby news, Archer stock got a boost as investors bet on companies that could be poised to benefit as the U.S. moves to strengthen its position in defense drones. Despite some volatile swings across the stretch, Archer Aviation stock is now up 36% across 2025's trading. With its latest valuation gains, Archer now has a market capitalization of roughly $7.3 billion.

What's next for Archer Aviation?

Joby's move to significantly increase its manufacturing operations could be a sign that the company expects to receive the necessary regulatory permits to begin operating in some key markets soon. If Joby receives regulatory approvals, there's a good chance that Archer Aviation will also be in good position to receive approvals to begin commercial operations for its Midnight craft. But while the potential commencement of commercial operations in the air-taxi space is likely to be the biggest factor in whether Archer posts meaningful revenue this year this year, news about eVTOLs and other drones designed for the defense industry could actually be a bigger catalyst for the stock in the near term.

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Keith Noonan has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.