Electric Vertical Takeoff and Landing companies (eVTOLs) have been making great progress and burning billions in dollars over the last few years. The publicly traded eVTOL firms like Joby Aviation, Lilium and Archer Aviation have fallen by double-digits since their peak.
The eVTOL industry has made significant progress
eVTOL firms hope to transform the transportation industry in urban areas. These firms are convinced that their solutions can help reduce congestion in many major cities.
eVTOL is an electric helicopter which can transport people around urban areas, thus saving time and money. Multiple studies predict that the market for eVTOLs is expected to grow from $12,5 billion in 2023 up to $35 billion by 2030.
These eVTOL firms have been backed by some of the biggest companies around the globe. Archer Aviation has the backing of Stellantis, which is also responsible for Jeep, Dodge Fiat and Maserati. Cathie Wood’s Ark Invest, United Airlines and United Airlines are also investors.
Joby Aviation’s investors include companies such as Toyota, Baillie Gifford and Delta Air Lines. Lilium is supported by Tencent, LGT and Atomico.
Costly and time consuming, building an eVTOL and getting all of the regulatory approvals required is difficult. Some of these companies have already gone through the lengthy process and obtained preliminary regulatory approvals.
Lilium was approved by the European Aviation Safety Agency in November of last year.
In the United States Joby Aviation completed the FAA certification stage at the third level. The company is working closely with regulators on the approval of the final process.
Archer Aviation has received final approval from the FAA to begin operating commercial airlines. The FAA also granted it the authority to provide specialized aviation repair services.
The documents will allow Archer Aviation to have both documents needed for air taxi service when the Midnight aircraft is ready. Stellantis’ recent investment was based on the approval.
In the last few years, all three firms have seen significant orders. Lilium received a recent order for 100 jets, from Saudia Group. Another one came from UrbanLink. And 4 jets were ordered by eVolare. United Airlines placed an order of $1 billion with Archer Aviation, while Joby works for the US Military.
These companies still face several challenges. All of them are in unproven industries whose growth projections are based on assumptions. They are also – and they will continue to be – burning cash over the next few decades. They will all need cash to fund their operations, which will erode the value of existing investors.
Archer Aviation Stock Price Analysis
TradingView’s ACHR Chart
On the daily chart, it is clear that ACHR’s stock has recovered by more than 56% since its June low of $3. The price has moved past the Fibonacci retracement 50% point, and above the $4.40 resistance level. This is its lowest point since October of last year.
Archer Aviation’s shares rose also above the upper edge of the chart pattern falling wedge shown in green. This pattern tends to be one of the more popular bullish signals. The price has increased above both the 100-day and 50-day moving averages.
The stock is therefore likely to continue increasing as investors target $5.47, which represents its high point for this month. The stock will confirm further upside only if the price rises over that point, as it would invalidate the pattern of a double top.
Lilium stock price forecast
TradingView’s LILM Chart
Lilium stock has tried to recover after dropping to $0.3721 from $15, a record-high in 2021. Recently, the stock price has risen to $1 and there is no clear direction.
The stock is consolidated at its 50-day moving median and slightly above the important support level of $0.7886. This was the lowest point for the month. Stock has formed a triangle with symmetrical sides that is close to its convergence level.
While a lot of things can happen, I think that Lilium’s share price will eventually have a downward breakdown, and test the $0.50 support level.
Joby Aviation Stock Analysis
Chart by TradingView of the JOBY
Joby Aviation, like other eVTOL firms, has seen its stock fall from $12 per share in 2023 down to $4.50 last year. In July it reached $7.70, the highest level since August of last year. It had formed a triangle with symmetrical sides. It grew and turned the $6.47 high (February) resistance level into a supportive support.
Stock is still above 50-day average, but slightly below 61.8% Fibonacci retracement. JOBY will also likely experience a bullish break out as investors aim for the $7.70 year-to date high. If the stock is able to rise above this resistance level, then there will be more upside.
The post eVTOL stock forecasts for Joby Aviation Lilium and Archer Aviation could be updated as new information becomes available.
