ACHR Stock Alert: Archer Settles Boeing Lawsuit

Source: T. Schneider / Shutterstock.com

Archer Aviation (NYSE:ACHR) stock is up 2% and trending on social media this morning after the air taxi maker settled a lawsuit with Boeing (NYSE:BA). Under the terms of the deal, Boeing will invest in ACHR in return for ACHR stock.

Archer has developed electric vertical takeoff and landing aircraft (eVTOLs). The relatively small aircraft, which are supposed to ferry small numbers of people around metropolitan areas, take off and land like helicopters but are powered by electricity.

More About the Lawsuit and the Settlement

Wisk, Boeing’s subsidiary, which is also developing eVTOLS for use as air taxis, filed a lawsuit against Archer about three years ago, alleging that ACHR had violated its patents and used its technology without authorization.

Under the settlement announced today, Boeing will invest an unspecified amount in ACHR through a public equity (PIPE) financing round. Among the other firms investing in the $215 million round were automaker Stellantis (NYSE:STLA), United Airlines (NYSE:UAL) and Cathie Wood’s ARK Investment Management. Boeing’s investment will reportedly be used to jump-start the partnership between Wisk and Archer on autonomous flying.

Additionally, Wisk “will become the exclusive provider of autonomous flying technology to Archer” if the latter firm develops autonomous aircraft, The Verge reported.

Commenting on the deal with Boeing, Archer said: “This strategic relationship will leverage each company’s respective strengths and competencies with the goal of accelerating the commercialization of autonomous flight.”

The Price Action of ACHR Stock

Heading into today, Archer’s shares had risen 4% in the last five days, 19% in the preceding month, and 212% so far in 2023.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currencies to display

Get The Latest Investing News
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.