The Pentagon Is Buying eVTOLs. Here's Which Stock Wins the Defense Money.
Archer's defense strategy could give it an edge over Joby.
Overview
The Pentagon has spent years testing electric vertical takeoff and landing (eVTOL) aircraft, and two of the biggest beneficiaries have been Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY). But if I'm looking for the eVTOL stock with the stronger defense opportunity today, I'm going with Archer. Let me explain.
Archer's contract with the U.S. Air Force's Agility Prime program is valued at up to $142 million. The company delivered its first Midnight aircraft to the Air Force in 2024 after receiving a military airworthiness assessment from the Department of Defense. The military has been evaluating Midnight for missions including personnel transport, logistics, medical evacuation, and intelligence and surveillance.
Details
That said, Joby has also collected plenty of defense money. Its Air Force contract reached a potential value of $131 million, with plans to provide as many as nine aircraft. Joby has operated aircraft at Edwards Air Force Base and continues working with the Air Force on autonomous flight technology. So why give Archer the edge?
Source
Originally published at www.fool.com.