Archer Aviation’s CEO Just Gave Investors Great News
Shares of Archer Aviation (ACHR -6.65%) have been jumping recently after the company announced new aircraft stemming from its partnership with Anduril, a defense technology and autonomous systems company. It’s a huge deal for Archer, an electric vertical take-off and landing (eVTOL) stock that has been in a tailspin for much of the year.
Archer’s CEO is bullish on the opportunities this could unlock for the company. However, despite the positive news, the eVTOL stock is still down 37% year to date. Could now be a good time to buy it?
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Archer unveils Thunder and Halo
Last week, Archer announced details around a new autonomous VTOL platform it had developed with Anduril, which can be used for both commercial and defense purposes. One of the new aircraft from the platform, Thunder, will provide speed, range, and payload that are necessary for defense applications, while also being cost-efficient. Archer expects Thunder’s first flight to take place next year. A few days later, the company also unveiled Halo, which is the commercial variant that it developed with Anduril. Like Thunder, it will be autonomous and be able to take on heavy payloads. Archer has already been working on certifying its piloted eVTOL Midnight aircraft, which is designed for air taxi services.
In announcing the news, Archer CEO Adam Goldstein said, “This is the most sophisticated vertical lift aircraft platform ever developed–it’s exactly what our customers need.” The opportunities could be significant for Archer, particularly in defense, where demand can be high.
Today’s Change
(-6.65%) $-0.34
Current Price
$4.77
Key Data Points
Market Cap
Day’s Range
$4.74 – $5.17
52wk Range
$4.30 – $14.62
Volume
234.4K
Avg Vol
43.8M
Gross Margin
-120526.32%
Is Archer’s stock destined to soar higher?
Archer’s stock rose by around 20% on the day that it announced Thunder and the program with Anduril.
The market remains hesitant, however, because while the opportunities are significant, so too are the risks and uncertainties. Archer’s aircraft still requires certification, and until it begins manufacturing at scale, it’ll be difficult to know just how long it may take for the business to become profitable, as it’s a capital-intensive industry. Its losses have also been growing, totaling $743 million over the trailing 12 months.
The eVTOL stock may be a compelling option for growth investors to consider, but this is an investment that will clearly require a lot of patience, as it’ll take time for Archer to generate any significant revenue and even longer before it has any hope of achieving profitability. But with its opportunities expanding in scope due to the new platform it has developed with Anduril, Archer’s stock clearly has a lot of upside and room to grow.
