ACHR - Why Archer Aviation and Other Flying Car Stocks Took Off Today
2024-01-22 13:37:12 ET
Archer Aviation (NYSE: ACHR) has a new deal to collaborate with the National Aeronautics and Space Administration (NASA), and the agreement looks like a validation of the "flying taxi" start-up's engineering. Investors are excited about the development, sending shares of Archer up as much as 15% on Monday morning.
The announcement seemed to rekindle interest in the once-hot but lately out-of-favor sector, sending shares of Lilium (NASDAQ: LILM) up by as much as 13% and Joby Aviation (NYSE: JOBY) up by as much as 11%. All three stocks had retreated somewhat as of midday.
Archer is one of a handful of start-ups developing electric vertical takeoff and landing (eVTOL) aircraft -- so-called flying taxis -- that might one day ferry commuters over crowded highways and allow airlines to more efficiently feed their large hubs with passengers from the outer suburbs. Archer's eVTOL is still in development, but NASA apparently is intrigued by what it's doing.
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Why Archer Aviation and Other "Flying Car" Stocks Took Off Today