Flying taxi maker Archer settles Boeing Wisk lawsuits, secures new investment
2023-08-10 - Scroll down for original article
Company: Archer Aviation
Archer Aviation is a leading company in the emerging market of electric vertical takeoff and landing aircraft (eVTOL). The company is currently working towards Federal Aviation Administration certification and plans to begin commercial operations in 2025.
The article reports that Archer Aviation has reached an agreement with Boeing and its Wisk air taxi unit to settle litigation and collaborate on autonomous technology. This is a significant development as it not only resolves legal disputes but also opens up opportunities for collaboration on future projects. Archer has also completed a $215 million equity investment round, which includes major players such as Stellantis, Boeing, United Airlines, and ARK Investment Management. This funding increases Archer’s total funding to over $1.1 billion, which could positively impact the company's stock price.
Historically, market reaction to similar news events has been positive. Settlement of litigation reduces uncertainty and risk, which is generally well-received by the market. Furthermore, the successful completion of a significant funding round and collaboration with industry giants like Boeing could be seen as a strong vote of confidence in Archer's business model and future prospects.
Investor sentiment towards Archer Aviation is likely to be positive following the publication of this news article. The resolution of legal disputes, the successful funding round, and the collaboration with Boeing could all be seen as positive developments that increase investor confidence in the company's future.
The agreement with Boeing and Wisk could potentially give Archer a competitive edge in the eVTOL market. The collaboration on autonomous technology could lead to technological advancements that set Archer apart from its competitors.
Despite these positive developments, there are still potential risks that could impact Archer's stock price. The eVTOL market is still in its early stages and there are regulatory hurdles to overcome. The company's success is also dependent on the acceptance and adoption of this new form of transportation by the public.
Overall, the news article is likely to have a positive impact on Archer Aviation's stock price in the short term. The resolution of legal disputes and the successful funding round are positive developments. However, investors should closely monitor the company's progress towards FAA certification and the public's acceptance of eVTOL technology.
This financial report is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research and consult with a financial professional before making any investment decisions.
Flying taxi company Archer Aviation prepare for the debut of their all-electric aircraft from a facility in Hawthorne, California, U.S. June 8, 2021. Picture taken June 8, 2021. REUTERS/Mike Blake Aug 10 (Reuters) - Air taxi maker Archer Aviation (ACHR.N) has reached an agreement with Boeing (BA.N) and its Wisk air taxi unit to settle litigation and collaborate on autonomous technology, the companies said on Thursday. Separately, Archer said it completed a $215 million equity investment round that includes Stellantis (STLAM.MI), Boeing, United Airlines (UAL.O), and ARK Investment Management, increasing Archer’s total funding to date to over $1.1 billion as it works to win Federal Aviation Administration certification and begin commercial operations in 2025. In a joint statement with Boeing and Wisk, Archer said it "has agreed to make Wisk its exclusive provider of autonomy technology for future variants of Archer’s aircraft." Boeing said it is making an investment in Archer "that will support the integration of Wisk’s autonomous technology in future variants of Archer’s aircraft." The agreement settles several lawsuits. Wisk was formed through a joint venture between Boeing and Google co-founder Larry Page's Kitty Hawk Corp, which is now wholly owned by Boeing. Wisk sued rival Archer in 2021 accusing it of stealing trade secrets and infringing on its patents. Archer counter sued Wisk in 2021 "for its false and malicious extra-judicial smear campaign" and Boeing in 2022. Archer will issue warrants to Wisk for up to 13.2 million shares as part of the settlement and autonomy agreement. Electric vertical takeoff and landing aircraft (eVTOL) have been touted as the future of urban air mobility. Low-altitude urban air mobility aircraft has drawn intense global interest. The $215 million funding includes an acceleration of $70 million from Chrysler-parent Stellantis under a 2023 strategic funding agreement. In January, carmaker Stellantis said it would help build Archer Aviation's electric aircraft and increase its stake in the U.S. company. Airlines and other companies are looking at developing transport services using battery-powered aircraft that can take off and land vertically to ferry travelers to airports or for short city trips, allowing them to beat traffic. Reporting by David Shepardson in Washington Editing by Matthew Lewis and Lisa Shumaker Our Standards: The Thomson Reuters Trust Principles.