Fresh partnership news is pushing Archer Aviation (NYSE:ACHR) stock toward the skies today. Recently, the electric vertical takeoff and landing (eVTOL) innovator announced plans to develop a vertiport network in the United Arab Emirates (UAE) with local flyer Falcon Aviation.
According to a statement released on March 11, the two companies will be connecting Dubai and Abu Dhabi by way of Archer’s Midnight electric air taxi. The firms aim to have the network fully operational as soon as 2025. After a difficult month, ACHR stock could certainly use a positive catalyst. Now with Archer expanding its reach overseas, shares are in a prime position to rise.
Is ACHR stock finally starting the turnaround investors have been waiting for? Shares of the company have struggled significantly for months, even as enthusiasm for flying car stocks has grown. But if ACHR can garner some sustainable momentum, it could easily lift back above the $5 mark.
What’s Happening With ACHR Stock?
Partnering with Falcon has been a great move for Archer so far. As of this writing, ACHR stock is up by around 6% for the day. Shares have also been mostly rising since last week, suggesting that they may finally be shaking off negative momentum from the past month or so.
Archer’s latest partnership should also serve as a reminder that the world of travel is quickly shifting. Flying cars aren’t a science-fiction trope anymore — they are the future of the transportation industry.
Furthermore, Archer and Falcon will be offering services between two of the UAE’s biggest (and most popular) cities, two top tourist destinations that can take over two hours to travel between by car. With the Midnight, passengers will be able to make the trip by air in “as little as 30 minutes.”
Archer founder and CEO Adam Goldstein offered some insight on the development:
“Partnering with established operators such as Falcon Aviation, as well as the capital of the Emirates with the Abu Dhabi Investment Office, has been key to quickly building our presence in the region […] We look forward to paving the way for the introduction of our Midnight aircraft to the region which will set the stage for the UAE to become a global leader in urban air mobility.”
To the Skies
Archer’s press release describes the road between Dubai and Abu Dhabi as “one of the world’s most prominent and congested commute corridors.” If that’s true, this market appears to be ripe for a new means of transportation to connect the two metropolitan hubs. That’s exactly what Archer and Falcon are poised to deliver on.
Some investors have likely been skeptical of ACHR stock recently, as shares have dipped amid high volatility. But announcements like this should remind them why the company could still emerge as a clear winner as the flying car market booms. Indeed, with air taxis beginning their journey to become a transportation mainstay, this partnership could mark a turning point for Archer and the industry.
On the date of publication, Samuel O’Brient 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.
