Archer Aviation (NYSE:ACHR) is soaring today on news of an important hire. The company, known for producing electric vertical take-off and landing vehicles (eVTOLs), has added Billy Nolen to its staff as Chief Safety Officer. A former acting administrator of the Federal Aviation Administration (FAA), Nolen comes to Archer with decades of experience in the aviation industry. He spent 26 years at American Airlines (NASDAQ:AAL) in safety-focused positions before working for several other prominent names in the field. ACHR stock has taken to the skies in response to the news. This makes it clear that the market approves of its recent hiring decision.
Does this mean that investors should be watching ACHR stock before it takes off even more? Let’s take a closer look at today’s news and assess what it means for Archer’s future.
What’s Happening With ACHR Stock
A new staffing decision doesn’t always boost a company’s share price. But that’s exactly what has happened since Archer announced Nolen’s hire. As of this writing, ACHR stock is up 17% for the day. While shares gained impressive momentum today, they have been rising steadily all week. What is more noteworthy, though, is the fact that ACHR is currently up more than 87% for the month, even after seeing some bad news. The company’s CEO recently stated that the European Union’s new regulatory standards could threaten Archer’s international growth prospects.
Through it all, ACHR has demonstrated impressive growth, showing investors that it is here to stay. It is close to passing the $5 mark, which would put it above penny stock status. This progress can be attributed to the company’s position in a growing and lucrative space. The eVTOL market is expected to reach a roughly $30.8 billion valuation by 2030. That would mean expanding at a compound annual growth rate (CAGR) of 15.3%. Experts such as InvestorPlace contributor Larry Ramer believe that Archer is in an excellent position to secure a share of this market as demand for eVTOL services increases.
Now the company is even better equipped to accomplish that than ever. By hiring Nolen, Archer has shown that it is focused on improving its safety aspects as it prepares to put vehicles in the air. That suggests that Archer is making progress on getting eVTOLs to market. As CEO Adam Goldstein states:
“Billy is an incredible leader and has long been a staunch supporter of the eVTOL aircraft industry, spearheading our country’s and the FAA’s global leadership role in this important area. Together, we will shape the future of transportation and make sustainable, efficient air travel a reality.”
Taking to the Skies
How close are Archer’s vehicles to taking off? Nolen seems to believe that it will be happening fairly soon. Reuters reports that when the flight safety expert departed from the FAA, he stated in an email that the world would “see eVTOLs certified in just a few years.” The fact that he has chosen to work with Archer implies something important: he believes the company is most likely to accomplish such a momentous feat.
If the eVTOL era is indeed close, as Nolen predicts, it will give rise to a new group of stock market winners. ACHR stock will likely lead the charge as the aviation sector prepares for an exciting new chapter.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
