UAL - Archer Aviation soars after landing new investment working out collaboration deal with Boeing

2023-08-11 06:58:17 ET

Archer Aviation ( NYSE: ACHR ) soared in premarket trading on Friday after the company secured a $215M investment from a group that included Stellantis ( STLA ), Boeing ( BA ), United Airlines ( UAL ), and ARK Investment Management.

The investment round includes an acceleration of $70M from Stellantis ( STLA ) under the strategic funding agreement entered into earlier this year, with $55M remaining available under that facility. "The commitment from Stellantis has been unrivaled, from its foresight to provide the manufacturing expertise and capital needed to accelerate Archer’s business objectives, to the strategic vision and steadfast support from CEO Carlos Tavares and Chief Engineering and Technology Officer Ned Curic," noted ACHR.

Archer Aviation ( ACHR ) also said that it reached an agreement with Boeing ( BA ) and Wisk to enter into autonomous flight collaboration and settle litigation matters.

"This strategic relationship will leverage each company’s respective strengths and competencies with the goal of accelerating the commercialization of autonomous flight. This approach is a natural extension of Archer’s overall strategy of focusing its in-house research and development on the key enabling technologies that cannot be sourced from the existing aerospace supply base, thereby helping Archer potentially avoid hundreds of millions of dollars of spending."

Finally, Archer ( ACHR ) announced that its Midnight aircraft received its Special Airworthiness Certificate from the Federal Aviation Administration. The eVTO aircraft maker noted that the certification signals that Archer’s Midnight aircraft has successfully met all FAA safety requirements allowing it to begin flight test operations. Those tests are expected to start in the coming weeks.

Shares of Archer Aviation ( ACHR ) rose 24.78% in postmarket to $7.28, which is above the 52-week high for the eVTOL stock.

More on Archer Aviation:

• Archer Aviation: The Best Risk/Reward In The eVTOL Industry
• Growth metrics on Archer Aviation
• Valuation metrics on Archer Aviation
• Seeking Alpha's Quant Rating for Archer Aviation

For further details see: