Archer Aviation (NYSE:ACHR) is among the key eVTOL (electric vertical takeoff and landing) aircraft companies in the market. For those looking to bet on flying cars, ACHR stock remains one of the key ways to do so.
This is a company that’s made significant strides towards flying car commercialization, leading to an impressive 83% rally in ACHR stock over the past year. Notably, the U.S. Air Force validated the company’s eVTOL technology with a $142 million contract. Archer also secured $215 million in investment from major players like Stellantis (NYSE:STLA), Boeing (NYSE:BA), and United Airlines (NASDAQ:UAL), ensuring robust financial support for its ambitious expansion.
Here’s why investing in ACHR stock should be your next move.
Key Stakeholders Continue to Bet on Archer
Archer Aviation gained attention in 2023, with Ark Invest actively purchasing ACHR shares. As of October 19, Cathie Wood’s Ark Invest bought 1.27 million Archer shares this month, bringing the ETF managers’ total ownership to 23.34 million shares. ACHR ranks 24th in Ark’s ETFs, holding a 1.07% allocation.
In Q3, Archer received nearly $1 million from the U.S. Air Force under contracts worth up to $142 million for a mobile flight simulator to understand Archer’s eVTOL platform. The company will release its Q3 earnings on November 9. Ark Invest also holds Joby Aviation, albeit with a smaller weight than Archer, suggesting higher confidence in Archer.
Stellantis Is Also Jumping on ACHR’s Progressive Boat
Stellantis made a significant acquisition of 12.31 million shares of ACHR stock on October 16, as detailed in a Form 4 received after market close. The shares were obtained under a forward purchase agreement (FPA) established on January 3, with an average per share price of $5.68.
This strategic purchase, worth $69.99 million, was part of a pre-planned agreement. Archer reported this milestone in its June 30 earnings report after meeting conditions specified in the forward purchase agreement.
Once Milestone 3 was met, Stellantis would secure $55 million in ACHR through a private placement. The primary condition was that it had to occur after January 1, 2024, contingent upon the Company’s successful Full Transition to Wing-Borne Flight for either Midnight-0 or Midnight.
It’s Now or Never with ACHR Stock
Archer plans to replace car rides with efficient eVTOL flights, securing $65 million for manufacturing. By partnering with aerospace suppliers and receiving incentives, Archer aims for cost-effective production. Strong year-to-date stock price appreciation highlights the company’s strong forward outlook. Indeed, there’s plenty of smart money betting on this company’s future. For those looking to follow in the footsteps of some renowned investors in this space, Archer remains an intriguing pick.
Personally, this company remains on my watch list for now. However, I do think this company presents an intriguing entry point at current levels for those looking to put aggressive growth capital to work.
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.
