Why Archer Aviation Stock Is Skyrocketing Today
Archer Aviation (NYSE: ACHR) stock is posting big gains in Friday's trading. The company's share price was up 18% as of 1:50 p.m. ET.
The stock is surging following a report that the Commerce Department on Thursday said it is considering implementing a ban on Chinese drones. The news highlights the possibility that Archer's competition could be limited and also spotlights the company's recent push into the defense industry.
Archer Aviation is an early player in the electric flying taxi space. While the company's Midnight flying vehicles have been operated by pilots in test flights and will almost certainly start out being flown by humans when commercial operations begin, it's likely that autonomous operations will be rolled out at some point. If the government were to implement executive orders that prevent Chinese-made drones and other flying craft from operating in the U.S., that would remove a significant source of potential competition for Archer.
Source Fool.com
