Tesla Has a Flying Car. What Does This Mean for Archer’s Flying “Taxi” Business?

A few weeks ago, a Tesla (TSLA +1.00%) Roadster drove up a nearly vertical ramp, turned upside down, then fell — I mean, launched itself — into the air before its side thrusters kicked in, flipping the car upright and landing it on the road below. It was by far the most incredible maneuver I’ve ever seen a car pull off. The Tesla then drove out of a cloud of vapor as if nothing had happened.

If you haven’t seen Tesla’s new flying car, it’s worth watching the video (in another stunt, the car launches itself upside down and literally barrel-rolls over five vehicles before landing upright). It’s an extraordinary demonstration of engineering, and one of those rare glimpses of a future that, until recently, seemed firmly in the realm of science fiction.

But now, what does this mean for Archer Aviation (ACHR -0.71%)? After all, Archer has also spent years developing its own flying vehicle — an electric air taxi. If Tesla can make a flying car, will there still be a market for Archer’s flying taxi, assuming it can get it certified? Let’s take a look.

Image source: Archer Aviation.

Tesla’s flying car is stunning, but it’s not a threat to Archer

I’ll just come out and say it: I don’t think Tesla’s flying Roadster will have an impact on Archer.

For starters, Tesla isn’t really competing with Archer. Look at what Tesla is making: A sports car — a really sleek and aesthetically striking sports car — that can burst briefly into flight. In contrast, Archer is building an eVTOL (electric vertical takeoff and landing) vehicle that can take off and land vertically like a helicopter and transition into forward flight like a traditional airplane. It’s also an engineering feat, and unlike Tesla’s Roadster, it doesn’t need thrusters to launch into the air.

These are obviously different vehicles, built for different purposes. And between the two, Archer’s is more practical. It’s designed to carry four passengers and a pilot. The Roadster, on the other hand, can only carry one person.

ACHR – Archer Aviation

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Archer’s aircraft is also likely closer to real-world use than Tesla’s. The flying Roadster might be functional, but it’s not approved for road use. There’s some question as to whether Tesla could ever get regulatory approval to mass-produce a flying Roadster, but even if it did, it would likely not beat Archer to the punch. Archer has already completed three of the FAA’s four type-certification phases and is now working through the final one.

Don’t get me wrong, though: Tesla’s recent demonstration was very impressive. But it was only impressive as a spectacle, not something that could solve transportation problems, like congested metropolitan roads. Archer’s eVTOL, on the other hand, could alleviate traffic in some areas.

In sum, I don’t believe Tesla’s flying car changes much for Archer Aviation’s future. If anything, it could even increase publicity around flying cars, helping Archer’s air taxi services when it does get its eVTOL certified.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.