Electric vertical takeoff and landing aircraft, once a futuristic concept, are gradually moving toward commercial reality. The market currently focuses on high-value routes such as airport shuttles for affluent travelers and time-sensitive medical missions.
Investor Cathie Wood, known for early support of disruptive technologies, has been increasing exposure to this sector through her ARK Space Exploration & Innovation ETF. In early 2026, the fund raised its positions in Joby Aviation and Archer Aviation.
Joby Aviation, founded in 2009 and based in Santa Cruz, California, is developing quiet eVTOL aircraft capable of flights up to 100 miles. The company follows a vertically integrated model covering design, testing, manufacturing, pilot training, and certification. It plans to launch commercial services in New York City and Los Angeles, with Dubai as its first international market. Strategic partners include Toyota, Delta, and Uber. The company employs over 1,700 specialists and has a market capitalization of approximately $14.1 billion.
Joby's stock traded at a 52-week low of $4.96 in April before rallying to a high of $20.95 in August. It has since retreated about 36% from that peak but remains up more than 200% from the April low. The recent pullback coincided with macroeconomic factors, including inflation data that delayed expectations for interest rate cuts, affecting long-duration growth stocks. Certification by the Federal Aviation Administration remains a key hurdle.
ARKX purchased 162,270 shares of Joby, a transaction valued around $2.6 million, giving Joby a 2.7% weighting in the fund. This purchase followed Joby's announcement of acquiring a 700,000-square-foot manufacturing facility in Dayton, Ohio, part of a $61.5 million investment to scale production. The Ohio site aims to produce four aircraft per month by 2027.
On November 5, Joby reported third-quarter 2025 results. The company posted a loss of $0.48 per share, compared to $0.21 per share a year earlier. Revenue increased to $22.6 million from $0.03 million in the prior-year quarter, largely due to the August acquisition of Blade's passenger business. Approximately 40,000 passengers flew on Blade routes during the quarter, including Ryder Cup attendees using 12-minute flights. Operating costs rose 30% year-over-year, driven by higher research and development spending and increased selling, general, and administrative expenses. Adjusted EBITDA was -$132.8 million.
Joby ended the quarter with $208.4 million in cash and completed an equity raise in October that brought in about $576 million. The company expanded its partnership with Uber, integrated Blade into the Uber app, conducted over 600 flights in 2025, operated point-to-point flights in California, and ran scheduled services in Osaka during World Expo 2025. Management expects cash, cash equivalents, and short-term investments to be at the upper end of the $500 million to $540 million range for 2025.
Analysts forecast Joby's loss per share to widen to -$0.20 for the current quarter, a 5.3% year-over-year increase. For the full fiscal year, losses are projected to grow 7.6% to around -$0.85 per share. For fiscal 2026, the loss is expected to narrow 11.8% to -$0.75 per share. The consensus analyst rating is "Hold," with one "Moderate Buy," seven "Hold," and three "Strong Sell" recommendations. The consensus price target is $12.14, with a street-high target of $22.
Archer Aviation, founded in 2018 and based in California, is developing the Midnight eVTOL aircraft for 20-50 mile urban trips. The company has a market capitalization of $5.8 billion and is pursuing commercial, defense, and airline partnerships. Its stock hit a 52-week low of $5.48 in April before rising about 62.3%. Over the past six months, the stock declined roughly 26.72%, peaking near $14.62 in October. A mid-October drop of about 9% followed news of an €18 million patent acquisition from Lilium. Shares are up 11.45% over the past month and 17.83% into 2026, supported by record test flights, expanding partnerships in Japan and the Middle East, and its role as the official air-taxi provider for the 2028 Los Angeles Olympics.
After Archer announced a partnership with Nvidia, ARKX bought 73,097 shares, giving Archer a 4.97% weighting in the fund. The stock rose 3.4% on the news.
On November 6, Archer reported third-quarter results with no revenue. Operating expenses increased 43.2% year-over-year to $174.8 million but decreased slightly from the previous quarter. Adjusted EBITDA was -$116.1 million. Net loss was $129.9 million, or -$0.20 per share. The company ended the quarter with $1.64 billion in cash and short-term investments, plus $7.3 million in restricted cash.
Archer has secured deals with the U.S. military and major airlines, acquired a regional airport, and at CES 2026 unveiled plans to develop AI-powered aircraft systems using NVIDIA's IGX Thor platform. This partnership, initiated in early 2025, aims to enhance pilot awareness, airspace integration, and autonomy. The systems will debut at Archer's Hawthorne airport hub in Los Angeles.
Analysts project Archer's loss per share to decrease 52.8% year-over-year to -$0.25 for the current quarter. For the current year, losses are expected to decline 27.5% to -$1.03 per share, with a further 7.8% reduction to -$0.95 per share in fiscal 2026. The consensus rating is "Moderate Buy," with four "Strong Buy," two "Moderate Buy," and four "Hold" recommendations. The mean price target is $11.61, implying 31% upside, with a street-high target of $18 suggesting 103% potential gain.