Archer Aviation on Monday announced a flying taxi deal with Korea Air. Shares of the manufacturer of futuristic aircraft jumped.
Korean Air will buy 100 of Archer's flagship Midnight model. Archer's aircraft specialize in electric vertical takeoff (eVTOL). These early-stage electrical aircrafts are a hybrid of a plane and a helicopter. They lift off directly from the ground, much like a helicopter, but then transition to winged flight, like an airplane.
Korean Air expects to use Archer's Midnight aircraft for myriad applications, including for use by the South Korean government, the company said in a press release.
Earlier this month Archer won an auction to acquire 300 patents that had previously belonged to its now-insolvent German eVTOL competitor Lilium. The $21 million purchase saw Archer's intellectual property grow to over 1,000 patents. Investors rewarded the move on the grounds that the additional patents would only increase Archer's competitive moat.
At present Archer's aircraft can carry one pilot and four passengers. The Midnight model that Korean Air is set to purchase is billed as a commuter friendly aircraft that can cut down on driving time in areas with heavy traffic. Archer already has an agreement with United Arab Emirates for commercial taxi flights in that country. That project's launch is slated for 2026. The greatest opportunity for Archer's business lies in further government contracts, in particular with the Pentagon. The U.S. government showed interest in the eVTOL sector earlier this year when President Donald Trump signed an executive order establishing a pilot program for the technology.
Archer Aviation Stock
Archer Aviation stock popped 5.8% to 11.98, bouncing back above the 21-day line. Last week, ACHR stock briefly cleared a 13.92 consolidation buy point, but never closed above that level. Shares ultimately reversed lower for a 6.1% weekly loss.
Archer stock has soared more than 250% over the last 12 months. Archer's share price is up 26% so far in October.
Flying taxi rival Joby Aviation leaped 11% to 17.43, rebounding from just below the 50-day moving average. Shares have a 19.98 cup-with-handle buy point.
Archer stock is currently in the middle of a 21-week consolidation after its strong surge over the past year, according to MarketSurge.
