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Archer Aviation and Joby Stocks Rise Following Trump Executive Order

Archer Aviation and Joby Stocks Rise Following Trump Executive Order
Executive Order Spurs Market Gains in Electric Air Taxi Sector
Shares of Archer Aviation and Joby Aviation surged on Monday, building on gains from the previous week after former President Donald Trump signed an executive order aimed at accelerating the development of electric vertical takeoff and landing (eVTOL) technology in the United States. The order, announced on Friday, establishes a pilot program to expedite the adoption of eVTOL aircraft, which companies like Archer and Joby are developing for both commercial air taxi services and military applications.
The White House emphasized that the policy seeks to address "unfair foreign competition" that poses a national security risk, while promoting American leadership in unmanned aircraft and drone technology. This initiative is expected to enhance the domestic eVTOL industry’s competitiveness and innovation capacity.
Market Response and Industry Implications
Following the executive order, Archer Aviation’s shares rose 8% in early trading on Monday, while Joby Aviation’s stock climbed 10%, continuing the momentum from Friday. Rocket Lab, a space launch services provider, also experienced an 11% increase in its stock price. The order permits expanded testing of “beyond visual line of sight” drone operations, allowing unmanned aircraft to operate beyond the direct view of supervisors, a regulatory change anticipated to accelerate commercial drone deployment.
Archer’s stock rally was further supported by the announcement of an $850 million funding round secured shortly after the executive order, signaling strong investor confidence in the sector’s growth potential. This capital infusion not only bolstered Archer’s valuation but also positively influenced Joby’s share price. However, Archer’s stock experienced a subsequent pullback, reflecting some investor caution regarding the scale of the financial move.
Emerging Market Dynamics and Future Outlook
The executive order and fresh capital have positioned Archer and Joby as frontrunners in the rapidly evolving eVTOL market, though responses from competitors remain uncertain. Industry analysts highlight the emergence of a “low-altitude economy” driven by air taxi technology. Morgan Stanley recently projected that this sector could eventually surpass the size of today’s automotive market, identifying Tesla as a potential future entrant despite the company not having announced any eVTOL plans. Tesla CEO Elon Musk has previously underscored the importance of developing a robust low-altitude economy in the United States.
As regulatory frameworks evolve and investment continues to flow into the sector, Archer and Joby are poised to capitalize on the growing momentum, advancing the commercialization of electric air taxis and shaping the future of urban mobility.

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