What's Going On With Archer Aviation Stock After Auto-Giant Stellantis Invests Another $55 Million?

Archer Aviation Inc. ACHR shares are trading higher Tuesday after the company announced it has received an additional $55 million investment from Stellantis N.V. STLA under the companies’ strategic funding agreement. 

The Details:

Archer Aviation received the additional $55 million investment from Stellantis following the achievement of its transition flight test milestone last month. 

Archer highlighted this investment is in addition to Stellantis’ series of open market purchases of 8.3 million shares of Archer’s stock in March 2024 and $110 million in a combination of open market stock purchases and investments under the companies’ strategic funding agreement in 2023. 

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“Few things rival the excitement of seeing a dream take flight. I applaud the innovation, expertise and hard work of the engineering and manufacturing teams from Stellantis and Archer,” said Carlos Tavares, Stellantis CEO. 

“With this additional investment in Archer, we remain on course for a future where freedom of mobility extends beyond today’s roads.” 

Last month, Archer Aviation announced plans for an air mobility network that will connect five strategic locations across the San Francisco Bay Area, allowing people to replace one-to-two-hour drives to cities around the bay with flights that take between 10 and 20 minutes. 

Should I Sell My ACHR Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Archer Aviation have lost 25.15% year to date. This compares to the average annual return of -29.97%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Archer Aviation stock currently has an RSI of 53.76, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

ACHR Price Action: According to Benzinga Pro, Archer Aviation shares are up 7% at $3.66 at the time of publication Tuesday.

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Image: Courtesy of Archer Aviation, Inc.