Archer Aviation Adds a Piece: What's the Value Proposition for Investors?

Morgan Stanley projected in its 2018 urban air mobility framework that the electric vertical takeoff and landing (eVTOL) market could reach $1.5 trillion by 2040, with an even more bullish scenario calling for $2.9 trillion. Those numbers have investors intrigued, and Archer Aviation (NYSE: ACHR) has emerged as one of the most popular ways to play the theme. The stock has surged 84% over the past 12 months despite a recent sell-off across small caps, as the company races toward Federal Aviation Administration (FAA) certification.However, Archer has just done something that's dividing the investment community. The company spent $126 million to acquire Hawthorne Airport's fixed-base operator and effectively take control of the remaining 30 years on the airport's master lease, adding an 80-acre property to its balance sheet through 2055. CEO Adam Goldstein called it "a generational opportunity to control a key airport and build the first purpose-built eVTOL hub at the center of a world-class aviation corridor," in an email statement.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool