June 5 (Reuters) - Archer Aviation ( ACHR ) said on

Wednesday the U.S. Federal Aviation Administration (FAA) has

granted the company a certificate to begin commercial

operations, making it the second electric air taxi maker to

achieve the key milestone.

Shares of the Santa Clara, California-based company rose 3%

in morning trade on receipt of the nod, known as Part 135

Certification.

The company's flagship electric vertical takeoff and landing

(eVTOL) aircraft, "Midnight," is yet to receive a Type

Certification from the U.S. aviation regulator. That

certification means an aircraft meets the FAA's design and

safety standards.

Archer, which is backed by companies such as Stellantis ( STLA )

, Boeing ( BA ) and United Airlines said it

plans to use conventional aircraft to refine its "systems and

procedures."

Peer Joby Aviation ( JOBY ) received the Part 135

Certification from the FAA in 2022.

Archer is among a bunch of eVTOL makers seeking to

revolutionize urban travel in congested cities by offering

short-haul air travel.

But, the industry faces regulatory and technological

challenges, such as battery density, which have weighed on

shares of eVTOL makers.

Archer shares are down 47% this year, while, Joby Aviation ( JOBY )

has fallen 26.7%.

However, that hasn't stopped large companies from betting on

the eVTOL makers. Earlier this year, carmaker Stellantis ( STLA ) raised

its stake in Archer by roughly 8.3 million shares, making it the

company's biggest shareholder, according to LSEG data.