Why Archer Aviation (ACHR) Stock Is Rallying Today

Archer Aviation (ACHR) is jumping 9.5% after it disclosed that it intends to provide aircraft this year to a commercial customer. The company also intends to manufacture “up to 10” of its aircraft this year and start generating revenue from its aircraft in 2025.

Archer develops and markets electric vertical take-off and landing aircraft or eVTOLs.

A technician assembling an electric aircraft, highlighting the company’s manufacturing capabilities.

ACHR’s Goals 

Abu Dhabi Aviation, which Archer calls “the largest commercial helicopter operator in the Middle East,” intends to deploy Archer’s EVTOL aircraft later this year. Abu Dhabi Aviation is slated to become Archer’s first commercial acquirer of ACHR’s eVTOL aircraft in the framework of Archer’s Launch Edition program. The latter initiative involves the deployment of Archer’s eVTOLs, called Midnight, in a number of geographic markets in the next 18 to 24 months.  The company plans to deliver the first Midnight aircraft to Abu Dhabi Aviation next summer.

Archer is starting to produce the Midnight aircraft and intends to build up to 10 of them this year. Additionally, Archer plans to begin generating revenue from the sale of Midnight eVTOLs in 2025.

The Recent Performance of ACHR Stock

In the last month, the shares have fallen 7%, while they have declined 8% in the last three months.

While we acknowledge the potential of ACHR, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.