ACHR - Why Archer Aviation and Joby Aviation Stocks Are Down Today
2023-07-19 13:17:04 ET
A new government plan has raised questions about the timetable for air mobility start-ups to start flying paying customers, and investors are worried. Shares of Joby Aviation (NYSE: JOBY) fell by as much as 18.5% on Wednesday and shares of Archer Aviation (NYSE: ACHR) were down by as much as 11.2% as markets tried to decipher what the news means for these companies. As of 1 p.m. ET, they were still down by 17.3% and 10.3%, respectively.
The era of "flying cars" is close at hand. Though it might not look much like how The Jetsons envisioned it, a number of companies are making progress on developing small electric-powered vertical takeoff and landing aircraft (eVTOL) that can transport passengers above crowded city streets.
New aircraft types require new rules to keep the skies safe, as well as certification from the Federal Aviation Administration (FAA). Joby, Archer, and rivals including Lilium and Vertical Aerospace are all working with the FAA to get their designs certified and airborne, with some investors hoping to see the eVTOLs in commercial service as soon as 2025.
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Why Archer Aviation and Joby Aviation Stocks Are Down Today