For decades, people have dreamed of zooming through the skies in flying vehicles to take you where you need to go. This idea has not been realized yet, but with modern technology, flying taxis are turning from a science fiction idea into reality and may soon come to a city near you.

Okçu Aviation (NYSE:ACHR) is one of the pioneers of flying vehicles and one of the companies best positioned to lead the emerging economy. The company has made significant progress, and regulators have also made progress in defining the rules and regulations for this emerging form of travel. But Archer Aviation is still a young company and has some work to do before flying taxis become mainstream.

Here’s what you need to know if you’re considering buying shares in the company today:

Archer aims to reimagine urban travel

Archer Aviation is at the forefront of the transportation revolution with its groundbreaking electric vertical takeoff and landing aircraft (eVTOL) technology. The company aims to reimagine urban travel with its Midnight aircraft, designed for vertical takeoff, landing and helicopter-like hovering. Unlike traditional helicopters eVTOLs use electric motorsIt offers a more efficient, quieter and environmentally friendly mode of travel that fits perfectly into busy city life.

Earlier this year, Archer reached a critical milestone by performing a successful transit flight of Midnight. The aircraft glided vertically before sprinting forward, reaching speeds in excess of 100 mph, transitioning effortlessly from hover mode to wing flight mode, and returning to a smooth vertical descent.

Archer completed an impressive 402 test flights at the beginning of September and made significant progress towards its goal. Obtain Type Certification. This important certification will pave the way for commercial flights by showing that Midnight meets stringent safety standards.

Image source: Archer Aviation.

Archer anticipates that Type Certification will be completed by late 2025, followed by production certification, which will enable large-scale production.

FAA clears the way for air taxis

Last month, the Federal Aviation Administration (FAA) announced the final Special Federal Aviation Regulations (SFAR) specifically tailored for powered lift pilot certification and operations. This editing opens the door for the commercialization of advanced air mobility (AAM) travel.

With training and pilot certification protocols now in place, the FAA is laying the groundwork for a safe and efficient operational environment for these innovative aircraft. Analysts at Canaccord viewed the decision to provide final regulations before the election as generally positive for the air taxi industry.

What’s next for Archer Aviation?

Archer recently signed a memorandum of understanding Southwest AirlinesIt aims to develop operational plans for electric car taxi networks at California airports. As part of this, the Los Angeles air mobility network is planned to be launched in 2026.

But this is just the beginning; Plans are underway to electrify major locations in the New York City metropolitan area, Northern California, and South Florida. Looking globally, Archer is eyeing the United Arab Emirates, where it hopes to be operational as early as 2025 and in India by 2026.

The company has already demonstrated impressive momentum, with an order book of 1,141 aircraft at the end of the second quarter, which includes significant pre-delivery payments. The United Arab Emirates leads the way in this regard, placing 475 orders, followed by 300 from the USA and 200 from India.

On November 7, Archer signed an agreement with Soracle, a joint venture of Japan Airlines and Sumitomo Corporation, to bring AAM services to Japan. As part of the deal, Soracle will have the right to order up to 100 aircraft, bringing its indicative order book to over $6 billion.

So, is the stock a buy?

Archer Aviation is an exciting company developing a completely new form of urban transportation. The growth potential is huge, Morgan Stanley urban air mobility market Could reach $1 trillion by 2040.

ACHR Net Revenue (TTM) data Y Charts

The company is still in the early stages of its growth story, pre-revenue and pre-commercial operations, and significant execution risk exists. For example, any disruption in testing or manufacturing its aircraft could impact the timeline, delay deliveries, delay revenue generation, and potentially increase costs.

Therefore, Archer Aviation stock is ideal for investors with a high risk tolerance and long-term investment horizon. stock left story focused for nowcommercialization and cash flow positive operations are still years away. If you buy the stock, don’t risk more than you’re prepared to lose and make sure it’s part of a balanced portfolio.

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Courtney Carlsen It has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a feature disclosure policy.