Archer Aviation (NYSE:ACHR) stock is down Tuesday despite inking an agreement with Trax, a provider of aviation and engineering-related software. According to the press release, Archer plans to “leverage Trax’s web-based enterprise emRO system and eMobility apps” as well as its cloud-hosting capabilities to enhance its electric air taxi project.
Trax’s suite of paperless software should provide solutions for Archer’s maintenance and supply-chain management needs. It will also assist Archer’s processes related to its “production, planning, engineering, inventory, technical records, orders, and reliability processes.”
“Trax will allow Archer to safely and efficiently scale deployment of our electric air taxi service. Implementation of Trax is a key building block of our operational ecosystem and will provide our technical operations team and pilots an industry leading system to manage the operation,” said Tom Anderson, Archer’s Chief Operating Officer of Urban Air Mobility.
Trax showed similar enthusiasm over the new deal.
“Trax is pleased to partner with Archer, a leader in the emerging electric aviation market,” said Trax Executive Vice President Andrew Schmidt. “Trax’s eMRO and eMobility products will enable Archer’s air taxi service to be completely paperless on day-one and help the company achieve its goals through operational efficiency, streamlined processes, and a highly productive workforce.”
ACHR Stock Dips on Trax Deal
While the deal with Trax seems promising, investors are clearly a bit split on the matter. Indeed, ACHR stock is down more than 2% at the time of this writing. This year hasn’t proven particularly fruitful for ACHR stock, which has lost about 12% of its value since the start of 2024. That said, ACHR is up about 90% over the past 12 months.
Indeed, Archer has had a number of promising developments recently, including a $1 million payment from the U.S. Air Force last quarter following the delivery of a simulation aircraft for testing.
Archer remains one of the notable electric vertical take-off and landing (eVTOL) aircraft makers in the market today, alongside the likes of Joby Aviation (NYSE:JOBY) and General Motors (NYSE:GM). Each company is competing to become the air-taxi company of the future, with some farther along than others.
Archer is set to report fourth-quarter earnings results on Monday, Feb. 26.
On the date of publication, Shrey Dua did not hold (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.
