Archer Aviation vs. Joby Aviation: Which EV Airplane Stock Is a Better Buy in 2026?
2026-10-12 21:31
•Brendan Coffey •The Motley Fool
••••• •••••••• Axe Cap view
EV Air Taxi Stocks: Joby Edges Archer in 2026
Joby Aviation's lower valuation and early revenue give it an edge over Archer, despite both being risky bets.
South African investors scanning for futuristic growth could look at the eVTOL space, but tread carefully. Archer Aviation’s valuation is extreme—over 500 times sales—which is hard to justify given it still burns cash at a fierce rate and leans heavily on a few big partners like United Airlines. Joby Aviation, by contrast, trades at a far more reasonable 46 times sales, already has $53 million in revenue from its Blade acquisition, and runs a more mature manufacturing setup influenced by Toyota’s efficiency. For JSE watchers, this means a more disciplined capital approach and closer alignment to execution, which often matters more than flashy tech in our market. Still, both face huge regulatory hurdles and costly certification processes. If you want a punt on the future of air mobility in SA, Joby wins on fundamentals and valuation, but only with a skeptical eye on cash burn and legal risks. this is just our opinion and not financial advice
Prefer to watch Joby Aviation with a small allocation given valuation and real revenue; avoid Archer until it proves cash flow stability and diversification. Large positions are premature given sector uncertainty.
- JOBY
- ACHR
- USD/ZAR
- High cash burn and funding needs
- Regulatory delays in certification
- Dependence on limited strategic partners
6/10
Both Archer Aviation and Joby Aviation are developing electric vertical takeoff and landing (eVTOL) aircraft for commercial use, but face significant financial challenges with massive operating losses and negative cash flows. Joby is recommended as the better buy due to its lower valuation multiple (46x P/S vs. 546x), early revenue generation from its Blade acquisition, and more advanced manufacturing capabilities, though both remain highly speculative investments with substantial regulatory and execution risks.
Our take is based on reporting first published by The Motley Fool.