Archer Aviation (NYSE:ACHR) stock is surging today, up more than 15% as of this writing after the company revealed its planned San Francisco air mobility network. Indeed, the aviation company plans to construct a network connecting five locations within the Bay Area.
What does this mean for ACHR stock?
Well, if today’s jump is any indication, it’s seems like a very strong new development for Archer — and for residents of San Francisco. Per Archer’s announcement, the air mobility network will allow intracity travel via short flights throughout the area.
According to the press release, people will be able to take 10 to 20 minute flights within the network, saving them from potential hours of auto traffic.
Archer has already pinpointed the Kilroy Oyster Point as a “critical hub” in the network. As such, Archer has partnered with Kilroy Realty (NYSE:KRC) for the development of certain logistics, including a potential “Sea Portal waterfront mobility hub” for aircraft and electric ferry operations.
“We’re thrilled to collaborate with Kilroy on developing infrastructure to support Archer’s air mobility service and laying the foundation for a robust network of landing sites throughout the Bay Area,” said Bryan Bernhard, Chief Growth & Infrastructure Officer at Archer. “I applaud Kilroy’s vision as one of the first developers to see our mobility service as a differentiating amenity for their real estate portfolio.”
ACHR Stock Jumps in Otherwise Poor Year for the Company
Despite today’s uptick, ACHR stock is still well in the red for the year. Indeed, ACHR is down about 37% year-to-date (YTD), even as the S&P 500 enjoys gains of more than 15% over the same period.
A number of issues have plagued the commercial eVTOL aircraft company this year, especially rising costs. It’s unclear whether today’s jump is the start of a new chapter for Archer, or a blip on the radar.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
