Air taxi stocks sink 40% to 62% as eVTOL sector faces reality check

The three largest publicly traded air taxi companies have lost more than $7 billion in combined market value this year as investors reassess the timeline for commercial electric vertical takeoff and landing operations.

Joby Aviation, Archer Aviation and EHang Holdings have each fallen 40% to 62% year to date through July 17, wiping out more than $7 billion in combined market value.

"The market is repricing the entire eVTOL cohort as the gap between certification milestones and revenue generation becomes harder to ignore," said Sarah Lin, equity analyst at a New York-based research firm.

Joby shares are down 45% to about $7.25, giving the company a $7.2 billion market capitalization. Archer has lost 40%, valuing the company at $3.47 billion. EHang, the smallest of the three, has tumbled 62% to a $288 million market cap. Over the past month alone, Joby fell 22%, Archer dropped 16% and EHang slid 28%.

None of the three companies are profitable on a trailing 12-month basis, and all are burning cash to fund flight testing, regulatory certification and manufacturing scale-up. The sector's ability to raise additional capital without further diluting existing shareholders will depend on whether Joby launches passenger service in Dubai as planned and whether Archer begins U.S. commercial operations later this year.

Financial Reality Sets In

The numbers behind the selloff paint a stark picture. Joby reported a fourth-quarter 2025 operating loss of $206.8 million on research and development spending of $161.3 million. The company guided for fiscal 2026 revenue of $105 million to $115 million — a fraction of its operating costs. Archer's first-quarter 2026 net loss widened to $217.7 million from $93.4 million a year earlier, on revenue of just $1.6 million. EHang delivered only four EH216 aircraft in the first quarter, down from 66 in the prior quarter, and revenue collapsed to $3.8 million against a consensus estimate of $133 million.

Cash Positions Diverge

Joby ended 2025 with $1.41 billion in cash and added roughly $1.2 billion through equity and convertible debt in February, giving it the strongest balance sheet in the group. Archer holds about $1.8 billion in liquidity and became the first eVTOL company to close Phase 3 of the Federal Aviation Administration's four-phase type certification process. EHang, by contrast, had just $23.7 million in cash and equivalents, though its board approved a $30 million buyback in June.

What Comes Next

Sell-side analysts still see a median price target of $11.01 for Joby, implying 52% upside from current levels, with a split of three buys, five holds and three sells. Archer's partnerships with Nvidia, Palantir Technologies and Anduril, along with its role as the official air taxi provider for the 2028 Los Angeles Olympics, provide a pipeline of potential catalysts. EHang holds the world's first full suite of airworthiness certifications for a pilotless human-carrying eVTOL and has expanded test flights to Thailand, Mexico and Rwanda.

Whether the group recovers depends on three milestones: Joby's Dubai launch, Archer's U.S. commercial operations and EHang's ability to deliver on its back-loaded 2026 schedule. Each quarter of delay risks further compression of equity valuations and additional dilution for existing shareholders.

This article is for informational purposes only and does not constitute investment advice.