Electric air taxi firms Archer and Joby are pivoting to defense technology to secure immediate revenue. Archer acquired Boeing’s Wisk Aero in a stock swap, while Joby purchased Resonant Sciences for $500 million. These moves highlight the industry’s shift toward near-term income streams while awaiting long-term regulatory approvals for commercial flight.
The electric vertical takeoff and landing (eVTOL) sector is seeing a wave of consolidation as companies look to stabilize their finances. Archer Aviation and Joby Aviation, two prominent players in the urban air mobility space, have both announced major strategic acquisitions in mid-August 2026. These moves reflect a growing need to generate steady revenue from defense contracts while these companies continue the expensive, multi-year process of securing safety approvals for their commercial air taxi services.
Archer Aviation has agreed to acquire Wisk Aero, SkyGrid, and Insitu from Boeing in an all-stock transaction. As part of this deal, Boeing will receive a 16.5% equity stake in Archer. This acquisition is significant not just for its scale, but for the history behind it; Archer and Wisk were previously locked in a heated legal battle over intellectual property theft claims. By bringing Wisk into its fold, Archer has effectively settled this long-standing dispute and gained access to Boeing’s extensive aerospace resources. Investors will likely watch whether this integration can help Archer accelerate its development timeline and improve its technical capabilities without the burden of ongoing litigation.
In a separate but similar strategy, Joby Aviation has announced the acquisition of Resonant Sciences for $500 million. The deal consists of $450 million in cash and $50 million in stock. Joby plans to rebrand the company as Joby Defense, positioning it to provide specialized radio frequency and sensor technology to military customers. Alongside this acquisition, Joby also launched a $750 million at-the-market (ATM) equity distribution program. While this program provides the company with liquidity to fund operations and acquisitions, it also alerts investors to the possibility of share dilution, as the company may sell new shares to raise this capital.
For the broader eVTOL sector, these moves signal a strategic pivot. Most of these companies are currently pre-revenue, meaning they are spending heavily on research and development without earning significant money from commercial operations. The shift toward defense allows these firms to tap into government budgets, providing a more predictable financial cushion while they navigate the slow and strict regulatory path toward passenger-carrying flight.
However, these strategies come with risks. Both companies are now tasked with managing complex organizational integrations—merging new teams and technologies—while simultaneously trying to meet their original commercial product deadlines. There is also the persistent challenge of capital intensity; even with new defense contracts, these companies remain cash-intensive businesses. Investors will likely track how these acquisitions affect the companies' cash burn rates, whether the integration of these new subsidiaries causes any project delays, and if the defense revenue proves sufficient to offset the costs of ongoing commercial development.