Briefly Hits 52-Week High To Outstrip S&P 500 Gain

Archer Aviation’s (NYSE:ACHR) stock price has climbed almost 200% over the past six months, and buoyed by a recent $500 million deal it has shot up to a 52-week high of $9.84.

The price has since settled back to Earth somewhat at around $7 but the increase in Archer’s stock price over the past year has risen due to alliances secured by the company and most recently, a contract with Soracle to deliver up to 100 Midnight eVTOL aircraft in a deal worth $500 million. Soracle is a joint venture between Japan Airlines and Sumitomo Corporation that plans to introduce electric air taxi service in Japan.

The FAA’s creation of a new aircraft category for electric air taxi vehicles has permitted the commercialization of the new urban advanced air mobility (AAM) sector in which Archer and other companies are busily staking their claims for market share.

One of Archer’s key alliances has been the $55 million investment by giant Dutch carmaker Stellantis to accelerate eVTOL manufacture. In addition, in 2021 the company secured a deal worth almost $1 billion with United Airlines who wants to use Archer’s aircraft for regional passenger routes under the Mesa Airlines brand.

One aspect that currently separates Archer from the others is that its flagship aircraft, the Midnight, is currently configured to be flown by a pilot carrying four passengers with carry-on bags. It is not yet known if the company plans to evolve into producing uncrewed aircraft in the future but it seems a reasonable possibility.

FMI:  www.archer.com/