Archer Aviation’s (NYSE:ACHR) more–than–10% owner, Stellantis N.V. (STLA), recently increased its stake in the company by $15.6 million. ACHR is an aerospace company, currently developing electric vertical takeoff and landing (eVTOL) aircraft to provide air taxi service. Shares of the company gained over 3% in Friday’s extended trading session.
It is worth noting that in early 2023, global automaker Stellantis joined hands with ACHR to help develop the eVOTL aircraft.
As per the SEC filing, STLA bought 3,603,583 shares of Archer Aviation between March 4 and March 7, at an average price of $4.33 per share. Prior to this purchase, STLA had invested about $69.94 million in ACHR in October 2023. Interestingly, STLA’s total investment in Archer Aviation stands at nearly $159 million.
Recent Update
During its Q4 earnings call on February 26, Archer Aviation said it expects to complete construction of its Georgia manufacturing facility, enabling the production of up to 650 aircraft annually. The company also revealed its plans to obtain Federal Aviation Administration (FAA) certification in the upcoming months.
Additionally, ACHR disclosed that it intends to begin conducting commercial flights in 2025.
What Is the Future of ACHR Stock?
The accomplishment of key milestones, such as positive aircraft testing results, FAA certification, and the launch of commercial operations, might provide a significant boost to Archer Aviation’s stock. Furthermore, Stellantis’ ongoing investment in ACHR indicates STLA’s confidence in the company’s future growth prospects.
Overall, on TipRanks, ACHR has a Strong Buy consensus rating based on three Buy ratings. The average price target on ACHR stock of $10.33 implies a 125.6% upside potential from current levels. Meanwhile, ACHR stock has gained 65.3% over the past year.
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