One of Archer Aviation’s (NYSE:ACHR) major investors, Stellantis N.V. (STLA), recently increased its stake in the company by $55 million. This investment is part of an ongoing strategic funding agreement between the two companies. It came after Archer cleared a transition flight test milestone on June 8. Following the announcement of the news, ACHR stock gained 8.8% on Tuesday.
ACHR is an aerospace company that is currently developing electric vertical takeoff and landing (eVTOL) aircraft to provide air taxi service.
STLA-ACHR History
It is worth noting that global automaker Stellantis has been an investor in ACHR since 2021. Moreover, in 2023, the company invested $110 million in Archer through open-market stock purchases and investments under a strategic funding agreement.
In addition, STLA purchased 8.3 million shares of Archer stock worth $39 million in March this year.
What Is the Future of ACHR Stock?
In a recent development, ACHR has received Federal Aviation Administration certification, enabling the start of its commercial operations. This, coupled with Stellantis’ continued investment, points to a promising future for ACHR.
Overall, on TipRanks, ACHR has a Strong Buy consensus rating based on three Buy and one Hold ratings. The analysts’ average price target on ACHR stock of $7.63 implies a 105.1% upside potential from current levels. Meanwhile, ACHR stock has declined 39.4% year-to-date.
