Archer Aviation (NYSE:ACHR) stock represents is pioneering eco-friendly urban air mobility with electric vertical takeoff and landing aircraft for efficient city travel.
Their fully electric crafts can carry four passengers up to 60 miles at 150 mph with minimal noise.
Archer Aviation’s stock surged as it secured a dominant position in electric vertical take-off and landing with a $142 million U.S. Air Force contract for six “Midnight” crafts, leading to a 29% stock price increase.
Recent Updates on ACHR
Around three years ago, Wisk, a subsidiary of Boeing (NYSE:BA) working on eVTOLs, sued Archer over patent violations and unauthorized technology use. They have reached a settlement where Boeing will invest in Archer through a $215 million PIPE financing round.
Stellantis, United Airlines, and ARK Investment Management also joined the funding. Boeing’s investment will help accelerate the collaboration between Wisk and Archer on autonomous flight.
If Archer develops self-flying aircraft, Wisk will exclusively offer autonomous flying technology. Archer aims to expedite autonomous flight commercialization through its strategic partnership with Boeing.
Archer is making progress in delivering its first eVTOL aircraft to a customer, under its contracts with the Department of Defense.
This follows the recent hiring of the FAA Administrator by Archer and securing the largest contract value among eVTOL companies from the DoD.
U.S Air Force Partnership
Archer Aviation has expanded its DoD partnership with $142 million U.S. Air Force contracts, reinforcing transformative potential of eVTOL aircraft.
Archer has partnered with DoD through AFWERX program since 2021, aiming to assess eVTOL potential for military purposes. Recently, Archer completed its first Midnight aircraft manufacturing.
This aircraft’s vertical takeoff, 1,000lbs payload, electric powertrain, and low noise profile have caught DoD’s attention for their potential in enhancing military operations. These eVTOLs offer safer, quieter, and cost-effective alternatives to helicopters, benefiting various missions and operations.
Following Archer’s Government Services Advisory Board establishment in May, the company seeks deeper engagement with U.S. government and public safety agencies to commercialize eVTOLs.
Advisory board members aid Archer’s interactions with relevant government bodies to advance eVTOL technology implementation.
What Now
The electric vTOL market is young; accidents or certification issues could be damaging. It’s a developing sector with uncertainties. ACHR stock is speculative, though promising.
Canaccord Genuity highlights underestimated eVTOL potential. They estimate up to 15% of airport rides and 5% of regional trips could be eVTOL-based, foreseeing a $58 billion market by 2033. Shares surged 200% this year, 97% in 6 months, and 38% in a month.
ACHR went public in 2021 after a $1 billion deal with United. The Air Force contract boosts its market cap, providing revenue for development. This is something investors should look forward to from now one.
On the date of publication, Chris MacDonald 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.
