Joby vs Archer: Which Defense Pivot Makes More Sense?

Oct 30, 2026

Bobby Quant Team

💡 Key Takeaway

Archer's defense pivot is more critical given its lagging commercial eVTOL progress, but Joby's stronger certification position and lower valuation make it the better risk/reward in the emerging eVTOL space.

Joby and Archer Both Make Defense Moves

In August, Joby Aviation (JOBY) announced plans to acquire defense specialist Resonant Sciences for $500 million in cash, alongside a $750 million stock offering to fund the deal. This move marks Joby's entry into the defense sector, diversifying its focus beyond commercial electric vertical take-off and landing (eVTOL) aircraft.

Almost simultaneously, Archer Aviation (ACHR) revealed it would acquire three subsidiaries from Boeing: Wisk Aero (autonomous eVTOL), SkyGrid (air-traffic-management software), and Insitu (drones). In exchange, Boeing will receive a roughly 16.5% stake in Archer after new stock issuance. This deal significantly expands Archer's defense and autonomous capabilities.

Both companies are racing to commercialize eVTOL aircraft for urban air mobility, but regulatory hurdles and unproven economics have delayed timelines. Joby appears further along in FAA certification, having completed the type inspection authorization (TIA) for its aircraft. Archer, meanwhile, has demonstrated flights but hasn't yet shown piloted transition flight (vertical takeoff to horizontal flight), a key milestone.

These defense pivots represent strategic shifts for both companies, aiming to generate revenue and diversify risk as commercial eVTOL timelines stretch. The moves also highlight the growing intersection of eVTOL technology and defense applications.

What This Means for Me

If you hold JOBY, the defense acquisition could provide a revenue cushion and diversification, but watch for dilution from the stock offering. If you hold ACHR, the Boeing deal adds strategic assets but also complexity and dilution; monitor integration progress and transition flight milestones. Investors with exposure to Boeing (BA) may see modest benefits from portfolio streamlining and the Archer stake, but the impact is likely small relative to Boeing's overall business.

Why These Pivots Matter for Investors

For Archer, the defense pivot is more critical. The company appears to be behind Joby in the commercial eVTOL race, with questions lingering about its transition flight capabilities and FAA certification. By acquiring Boeing's subsidiaries, Archer gains immediate revenue streams and defense contracts, reducing reliance on the uncertain consumer eVTOL market. This diversification could provide a lifeline if commercial timelines slip further.

Joby, on the other hand, is in a stronger position commercially, but still faces significant risks. The $500 million acquisition of Resonant Sciences and the $750 million stock offering dilute existing shareholders and add execution risk. However, Joby's lower forward P/S ratio (38 vs. Archer's 200.5) suggests it's relatively undervalued, and the defense move could open new growth avenues.

Both companies have been supplementing organic growth with acquisitions (Joby's Blade helicopter business, Archer's Hawthorne Airport), which inflates revenue but doesn't prove core eVTOL viability. The defense deals add another layer of complexity, but also potential stability. Investors should watch whether these acquisitions generate meaningful revenue and help fund the costly path to certification.

Ultimately, the defense pivots are a double-edged sword: they offer diversification and near-term revenue, but also distract from the core mission and add integration risks. The market's reaction will depend on execution and clarity on commercial timelines.

Stock to Watch

Stocks	Impact	Analysis
JOBY	Positive	Joby's defense acquisition diversifies revenue and leverages its advanced eVTOL technology, while its stronger FAA certification position and lower valuation make it a relatively safer bet in the sector.
ACHR	Neutral	Archer's defense pivot is necessary given its commercial lag, but the large stock issuance dilutes shareholders and the company still needs to prove its eVTOL capabilities.
BA	Positive	Boeing divests non-core subsidiaries and gains a stake in Archer, streamlining operations while maintaining exposure to eVTOL technology.

Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.