Why Archer Aviation Stock Is Soaring Today

A major investor is doubling down on Archer Aviation, but the stock is still down roughly 39% this year.

Archer Aviation (ACHR 8.77%) stock is making big gains Tuesday. The company’s share price was up 8.2% as of 3:30 p.m. ET, according to data from S&P Global Market Intelligence.

Archer Aviation stock is surging following news that Stellantis had made another investment in the company. The new, $55 million investment from Stellantis comes on the heels of Archer’s latest successful flight test for its Midnight electric-vertical-take-off-and-landing (eVTOL) aircraft.

Stellantis doubles down on Archer Aviation stock

Archer Aviation published a press release this morning detailing the latest round of investment from Stellantis — the auto company responsible for brands including Dodge, Chrysler, Fiat, Jeep, and Maserati. The $55 million investment follows Stellantis’ purchase of 8.3 million Archer shares in March and a $110 million stock and strategic-funding deal made in 2023.

What comes next for Archer?

In the press release detailing the investment from Stellantis, Archer confirmed that it was on track to complete its manufacturing facility in Georgia later this year. Per the report, the facility should be able to support the production of up to 650 eVTOL aircraft a year.

Despite today’s pop, Archer Aviation stock is still down roughly 39% year to date, and the company continues to post significant losses as it tests its eVTOL aircraft and moves to ramp up its manufacturing capacity. For reference, the company posted a net loss of $116.5 million in this year’s first quarter and closed out the period with cash and equivalents totaling roughly $406 million. The business remains in a pre-revenue state.

Stellantis’ recent investment represents another meaningful vote of confidence, but Archer will still have to find new ways to raise capital in order to continue funding its operations. Accordingly, the company will likely need to sell more stock or take on debt.

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