Air Taxi Maker Archer Raises $850 Million Following Trump Executive Order: Urban Mobility Sector Sees Major Boost

Archer Aviation secures $850 million after Trump’s executive order spurs demand for advanced air mobility

Archer Aviation, a leading U.S. air taxi developer, announced Thursday it has raised $850 million in fresh capital, a significant vote of confidence from investors following a recent executive order from former President Donald Trump aimed at accelerating the adoption of advanced air mobility (AAM) in the United States. The fundraising round underscores the surging investor interest in urban air mobility as government support and regulatory clarity propel the sector toward commercialization.

Federal Support Ignites Investor Optimism

The latest capital injection for Archer Aviation comes on the heels of Trump’s executive order, signed on June 10, which directs federal agencies to prioritize regulatory approval and infrastructure development for AAM technologies, including electric vertical takeoff and landing (eVTOL) aircraft. The order also includes incentives for manufacturing and pilot training, as well as public-private partnerships to deploy air taxi services in major U.S. cities by 2028.

Adam Goldstein, CEO of Archer Aviation, told Reuters, “The federal government’s clear commitment to making advanced air mobility a reality is a game changer. This funding will help us accelerate our timeline to commercial service and ramp up manufacturing capacity.” (Source: Reuters)

Archer’s Funding Round Attracts Major Institutional Investors

Archer’s $850 million raise attracted a mix of institutional investors, including several large U.S. pension funds and sovereign wealth funds from the Middle East and Asia. Existing backers such as United Airlines and Stellantis also participated, reaffirming their commitment to the company’s vision for urban air mobility.

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Archer says the funds will be used to expand its manufacturing facilities in Georgia, ramp up testing and certification efforts, and support the planned launch of its first commercial air taxi service in 2027. The company’s flagship eVTOL aircraft, “Midnight,” is designed to carry four passengers at speeds of up to 150 mph for intracity and regional trips, promising to cut commutes and reduce congestion.

Competitive Landscape: UAM Sector Heats Up

The executive order comes at a pivotal time as several U.S. and international firms race to bring air taxis to market. Competitors such as Joby Aviation, Lilium, and Vertical Aerospace have also seen a bump in investor interest, with analysts predicting a $150 billion global market for AAM by 2035 (Morgan Stanley).

Adam Jonas, senior analyst at Morgan Stanley, noted, “We’re seeing a seismic shift in how cities and investors are thinking about future transportation. Regulatory certainty is unlocking capital, which is essential for the high costs of scaling this technology.” (Source: Reuters, Morgan Stanley)

Industry observers say the U.S. government’s overt support gives domestic companies like Archer an edge in the global race, especially as European and Asian regulators weigh similar moves.

Policy Implications and Skeptics Weigh In

Not all perspectives on the executive order are optimistic. Some critics warn that fast-tracking regulatory approvals could raise safety and environmental concerns if not managed carefully.

A spokesperson for the National Air Traffic Controllers Association said, “We welcome innovation but urge a thoughtful integration process to ensure U.S. airspace remains the safest in the world.” The Federal Aviation Administration (FAA) emphasized that all aircraft will still be subject to rigorous certification.

Environmental groups, meanwhile, are pushing for stringent noise and emissions standards as eVTOL flights expand into urban environments.

Archer’s Next Steps: Toward Commercial Service

With its new funding, Archer aims to complete FAA certification for Midnight by late 2026, followed by initial passenger flights in Los Angeles, Miami, and Dallas in 2027. The company is collaborating with city governments and infrastructure partners to develop “vertiport” networks — dedicated hubs for air taxi takeoff, landing, and passenger processing.

In a statement, Archer said it expects the new capital will “support thousands of manufacturing and engineering jobs” and “establish the U.S. as the leader in next-generation urban transportation.”

Global Reverberations

The U.S. government’s accelerated push for AAM is expected to have ripple effects worldwide. China, South Korea, and the United Arab Emirates have launched rival air mobility pilot programs, with regulatory frameworks in various stages of development. Analysts anticipate global deal-making and strategic partnerships as the industry approaches commercial maturity.

A New Era for Urban Mobility

As Archer Aviation races ahead with fresh funding and robust government backing, the urban air mobility sector enters a defining phase—one that could reshape city transportation and position the U.S. as a leader in aerial innovation. While challenges remain, the confluence of investor enthusiasm, federal support, and rapid technological progress marks a major inflection point for air taxis and the future of urban mobility.

Sources Used in Research:

Reuters: Air taxi maker Archer raises $850 million after Trump executive order

Morgan Stanley Urban Air Mobility Reports

U.S. Federal Aviation Administration statements

Company press releases (Archer Aviation)

Additional industry analyses from Aviation Week, FlightGlobal