A new subsector is taking shape inside aerospace and defense: advanced air mobility. Electric vertical takeoff and landing (eVTOL) aircraft promise to turn congested commutes into short, emissions-free flights, opening a market analysts see topping $1 trillion by 2040.
Regulators are leaning in -- the Federal Aviation Administration (FAA) and the White House launched pilot programs in 2025 to fast-track certification, while the U.K. and UAE are building frameworks to attract the first fleets. For investors, this is still early-stage territory with high burn rates and certification hurdles, but the opportunity is enormous.
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Two companies -- Archer Aviation (ACHR 3.92%) and Joby Aviation (JOBY 9.77%) -- are the clear front-runners, each backed by strong partners and billions in funding. Their progress will decide who controls the skies as eVTOLs move from prototypes to everyday transport.
The production-ready frontrunner
Archer Aviation has built more operational infrastructure than any other eVTOL contender. It already holds FAA Part 135 air carrier and Part 145 repair-station certificates. In February 2025, it secured Part 141 approval to operate its own pilot-training academy -- a rare advantage once commercial service begins. Type certification for the Midnight aircraft remains the gating item, but Archer is pursuing multiple parallel Type Inspection Authorizations to accelerate the process.
Its financial position is equally notable. Archer ended the second quarter of 2025 with $1.7 billion in cash and equivalents, giving it the strongest liquidity among U.S. peers. Losses are steep. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was negative $118.7 million in Q2, but that spend is funding tangible progress: a completed high-volume manufacturing facility in Georgia and designation as the Official Air Taxi Provider for the 2028 Los Angeles Olympics.
That Olympics partnership is more than branding; it ensures coordination with federal and local stakeholders ahead of commercial rollout. With United Airlines as a launch customer and Stellantis providing manufacturing support, Archer has both the demand pipeline and production expertise to scale quickly once certification arrives.
The Uber of the skies
Joby Aviation (JOBY 9.77%) is leaning into partnerships and brand exposure ahead of certification. Its acquisition of Blade's passenger business will fold helicopter and seaplane flights into the Uber app, giving Joby operational experience and consumer visibility years before its eVTOL enters service. On the certification side, the company's first conforming aircraft moved to final assembly in August 2025, with Joby pilots slated to begin flights this year.
The roadmap shows steady progress. Joby disclosed it was approximately 70% complete with its portion of stage 4 certification, a key precursor to full approval. The balance sheet supports that push: The company ended Q2 2025 with $991 million in cash and investments, supplemented by a $250 million Toyota tranche, while guiding $500 million to $540 million in cash use for the year.
The Uber integration, expected as early as 2026, gives Joby an immediate commercial pathway -- customers booking "Uber Air" won't distinguish between today's helicopters and tomorrow's eVTOLs. Launch markets are already mapped out, from Dubai and New York to Los Angeles, the U.K., and Japan, with the White House eVTOL Integration Pilot Program offering a bridge to limited pre-certification operations.
The flight path ahead
These aren't profitable companies. They're pre-revenue certification plays burning hundreds of millions annually. But that's exactly what electric car pioneer Tesla looked like in 2010. The catalysts are aligning: FAA acceleration programs, strategic capital from Stellantis and Toyota, and commercial partnerships with United and Uber that guarantee initial demand.
The risks remain real. Certification could take longer than expected, cash burn could accelerate, or technical setbacks could delay commercial launch. But for investors who can stomach volatility and size positions appropriately, the risk-reward looks compelling.
