font size
The newest flying cars are electric, opening the way to serene air taxi services.
Courtesy Archer
The market for electric vertical take-off and landing, or eVTOL, aircraft is skyrocketing with some major manufacturing and aerospace companies getting involved.
Thursday,
Archer Aviation
(bar: ACHR) f
Boeing
(Bachelor’s) announce They settled litigation. The companies said most of the terms of the settlement were not disclosed. Moreover, Boeing is investing in
Archer
Archer will integrate some of Boeing’s eVTOL subsidiary Wisk’s autonomous flight technology.
More capital for Archer is coming from other big companies as well, which is a positive sign for the adoption of eVTOL, a technology that investors sometimes refer to as flying cars. They are quieter than conventional helicopters and are battery operated, opening the way for quiet air taxi services in cities.
Wisk and Archer were locked in a lawsuit for two years before Boeing bought all of Wisk in 2023. As part of the settlement, Wisk will receive orders for about 13 million shares of Archer’s common stock. Archer owns about 250 million shares outstanding.
Separately, Archer announced that it has received new investment from the automaker
excellent
(STLA),
United Airlines
(UAL), and Boeing, bringing the total new capital Archer Thursday to $215 million.
The settlement is positive for everyone involved. Archer gets cash, Boeing has another stake in a startup, Archer, and a legal issue is resolved for both parties.
We are glad to reach a mutually acceptable settlement. We are focused on supporting Wisk and excited about their continued progress toward certification and delivery of the first all-electric self-flying air taxi in the United States. “We are also pleased that our investment in Archer will support the potential integration of Whisk’s autonomous technology into future Archer variants.”
Archer did not immediately respond to a request for comment.
Shares of Archer opened Friday at $6.86, up nearly 18%, but then fell to gain 3.3% to $6.02 in the late morning. Boeing fell 0.5%, while Boeing declined
Standard & Poor’s 500
And
NASDAQ Composite
It lost 0.1% and 0.4%, respectively.
Also Thursday, Archer announce The FAA has issued a special certificate of airworthiness that allows for the flight test of the Midnight Air, a six-tilt electric eVTOL produced by the company. Midnight eVTOLs could see commercial service as soon as 2025.
Major companies in manufacturing and aerospace support the flying car trend because they want to be in the game if new technology shakes up the world. Their investment increases the likelihood that flying cars will reach a city near you one day.
Write to Al Root at allen.root@dowjones.com
