Why Archer Aviation Stock Took Flight on Tuesday
The eVTOL maker just got a big vote of confidence from a well-known name on Wall Street.
Archer Aviation (ACHR) soared on Tuesday morning, surging up to 9.6% in early trading and ending the day up 7.4%. The driving force behind the stock's meteoric rise was the news of significant buying by Cathie Wood, the CEO of Ark Investment Management. Wood's Ark Autonomous Technology & Robotics fund purchased 781,854 shares on Monday, while its ARK Space Exploration & Innovation fund bought an additional 379,750 shares, totaling over 1 million shares, valued at nearly $4.6 million.
Archer Aviation plans to create air taxi networks in Houston, Dallas-Fort Worth, and Austin, aiming to provide commuters in America's fastest-growing megaregion a faster, more cost-effective alternative to traffic. The electric vertical takeoff-and-landing (eVTOL) aircraft specialist is currently awaiting Federal Aviation Administration (FAA) approval for its Midnight air taxi, which will connect major airports to business districts and coastal destinations.
Despite the high-risk, high-reward nature of the stock, Archer Aviation has lost nearly 63% of its value over the past year as investors grapple with the uncertainty surrounding its future.
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