eVTOL Race Heats Up: Why Archer Aviation and Joby Aviation Are Competing for Tomorrow's Skies

The race to dominate urban air mobility is intensifying, with Archer Aviation and Joby Aviation emerging as the two most formidable contenders. Both companies are racing against the clock to capture market share in the rapidly expanding eVTOL sector, yet they’re taking distinctly different paths to commercialization. For investors eyeing this emerging space, understanding their strategic divergence—and relative strengths—has never been more critical.

Two Strategies, Two Approaches

Joby Aviation has doubled down on vertical integration, handling everything from aircraft design to future service operations. The company made a bold move by acquiring Blade Air Mobility’s urban air mobility passenger business, instantly gaining access to established terminal networks and passenger bases in New York and Southern Europe. This positions Joby to hit the ground running once regulatory certification arrives. Beyond that, Joby has been busy locking in international commitments: a potential $250 million deal with Kazakhstan’s Alatau Advance Air Group, strategic partnerships with Saudi Arabia’s General Authority of Civil Aviation (backed by Abdul Latif Jameel’s agreement for up to 200 aircraft), and expansion into markets spanning the US, UK, Japan, South Korea, and the UAE. Adding fuel to the fire, Joby partnered with NVIDIA to become the exclusive aviation launch partner for the NVIDIA IGX Thor platform—built on the NVIDIA Blackwell architecture—lending the company significant technological credibility for developing its Superpilot autonomous flight technology.

Archer Aviation, by contrast, is building a distributed model centered on ride-sharing and strategic airline partnerships. The company recently inked a major deal with Korean Air to introduce its Midnight eVTOL aircraft, with Korean Air potentially purchasing up to 100 aircraft. Archer also secured its physical footprint by agreeing to acquire Hawthorne Airport in Los Angeles for $126 million, a sprawling 80-acre facility that will serve as both a commercial hub and testing ground for AI-driven technologies. Additionally, Archer secured partnerships with Anduril Industries and EDGE Group to provide dual-use electric powertrain technology for the Omen Autonomous Air Vehicle system, showcasing its broader appeal across defense and commercial sectors.

Where the Numbers Tell a Different Story

Despite their ambitious trajectories, neither ACHR nor JOBY is currently profitable. Both companies report negative returns on equity, signaling that neither has yet cracked the code on turning shareholder equity into profit. However, the valuation picture diverges sharply: JOBY trades at a price-to-book ratio of 13.33X, substantially higher than ACHR’s valuation multiple. From an earnings perspective, ACHR has demonstrated superior execution, beating consensus estimates twice over the last four quarters, whereas JOBY has failed to surprise positively even once in the same period—missing the mark on two occasions and matching expectations on the remainder.

The Bottom Line: Which Play Makes Sense?

Both companies are advancing the frontier of eVTOL technology, yet Archer Aviation currently holds several advantages. Its track record of earnings surprise, superior valuation, and string of strategic airline partnerships suggest faster progress toward profitable commercialization. Joby Aviation’s vertically integrated model and regulatory milestones offer long-term potential, but execution risks remain. The broader industry still faces headwinds: scalability challenges, safety concerns, noise regulations, and questions about consumer adoption at competitive price points will determine true market viability.

From a risk-reward standpoint, ACHR’s current positioning appears more attractive for investors seeking near-term catalysts, while JOBY remains a longer-term bet contingent on flawless execution. As of now, ACHR carries a Zacks Rank #2 (Buy), while JOBY holds a Zacks Rank #3 (Hold)—a positioning that reflects the current consensus on relative strength between these two eVTOL pioneers.