Automakers and Airlines Invest Heavily in eVTOL Sector Amid Regulatory Hurdles
The latest in this situation
How it started
What happened
Major automakers and airlines are increasing investments in electric vertical takeoff and landing (eVTOL) companies, including Archer Aviation and Joby Aviation. Stellantis is serving as a primary manufacturing partner and financial backer for Archer Aviation, while Toyota holds a strategic partnership with Joby Aviation. Both companies are competing in the urban air travel market, though neither has received FAA approval for commercial flights in the U.S. yet.
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Why it matters
The urban air mobility market is rapidly growing, driven by interest from large corporations looking to disrupt traditional transportation. Despite significant backing from investors and partners, both Archer Aviation and Joby Aviation face regulatory hurdles, which has caused shares of both companies to decline significantly. Archer Aviation reported a net loss of roughly $618 million in FY 2025.
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Who's involved
- Archer AviationAmerican electric aircraft manufacturer competing in urban air mobility.
- Joby AviationAmerican aerospace company competing in urban air mobility.
- StellantisFranco-Italian-American automotive manufacturer serving as Archer Aviation's manufacturing partner.
- ToyotaJapanese multinational automotive manufacturer with a strategic investment in Joby Aviation.
- BoeingAmerican global aerospace and defense corporation whose subsidiaries were acquired by Archer Aviation.
- MidnightArcher Aviation's flagship eVTOL aircraft.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- FAA may face pressure to certify eVTOLs amid major industry investmentFAA faces increased pressure to finalize eVTOL certification amid major industry investmentLikely
- eVTOL development may expand United Arab Emirates' air taxi marketeVTOL development could expand the United Arab Emirates' air taxi marketPossible
- Ark Invest's eVTOL exposure tied to Archer's financial healthArk Invest's exposure to eVTOL risks hinges on Archer Aviation's financial stability and regulatory progress.Possible
How it developed
Newest first. Tap a step to see who reported it.Archer works with UAE on flight networks and maintains a manufacturing relationship with Stellantis.1 source
FAA has not approved commercial flights for either Archer or Joby, despite major backing.1 source
- Uber, Stellantis, and United Airlines plan to launch first-party air taxi services, with Stellantis acting as the biggest investor and production partner.Sub-event
Stellantis is providing manufacturing support to Archer, while Toyota maintains deep ties with Joby Aviation.1 source
- High-profile investors, including Paul Tudor Jones and Ken Griffin, increased their stakes in eVTOL companies Archer Aviation and Joby Aviation.Sub-event
- Toyota has a pending investment in Archer Aviation, an eVTOL leader, while Joby Aviation also operates in the growing urban air travel market.Sub-event
- Archer Aviation and Joby Aviation are competing in the urban air travel market, with Midnight being Archer's flagship aircraft.Sub-event
- United Airlines led early investment in Archer Aviation, which is headquartered in San Jose and uses a flight test facility in Salinas.Sub-event
Show 2 earlier steps
Stellantis, Toyota, and Delta are major backers of eVTOL companies Archer and Joby.1 source
- BlackRock and State Street hold stakes in Archer, which is also targeting commercial flights in the UAE.
Keep exploring
The entities involved
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Archer Aviation
American electric aircraft manufacturer
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Joby Aviation
American aerospace company
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Stellantis
Franco-Italian-American multinational automotive manufacturer
Related events
Coverage
Newest first; wire copies grouped- fool.com
- yahoo.com
- fool.com
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