Why Archer Aviation Stock Is Plummeting Today
Shares of Archer Aviation (NYSE: ACHR) are falling Tuesday. The stock lost 7.3% as of 2:10 p.m. ET, but was down as much as 10.4% earlier in the day. The loss comes as the S 500 (SNPINDEX: ^GSPC) slipped 0.1% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 0.3% on the day.
Archer, which develops electric vertical takeoff and landing (eVTOL) aircraft, announced Tuesday that it had raised just north of $300 million from a group of large institutional investors, including funds managed by BlackRock. The additional equity capital brings the company's total liquidity to roughly $1 billion.
Archer's central aim is to create a future where its eVTOL aircraft provide taxi services around the globe. However, it is now leveraging its technology for defense applications and will use the new funding to "accelerate [its] hybrid aircraft platform development for the defense market and beyond." CEO Adam Goldstein remarked that defense is an opportunity "substantially larger than [he] originally expected."
Source Fool.com
