Is Archer Aviation Stock a Buy on New Powertrain Supply Deal?

One such company making headlines in the eVTOL market is Archer Aviation (ACHR), and its new development is just another add-on to all these catalysts. A deal was struck between the company to deliver its proprietary electric powertrain technology to Anduril Industries and EDGE Group. This is the first time the company is integrating its powertrain system for any customer besides itself. The collaboration comes at a time when the company is associated with Anduril's Omen Autonomous Air Vehicle program and is also linked to delivering 50 systems, which may have further commercial applications for ACHR beyond passenger transport.

This is timely for Archer, as interest in the use of eVTOL aircraft is growing at the global level. The company's stock shows volatility considering concerns for FAA approval and high-growth expectations and high short interest of around 12%. On another front, interest in advanced air mobility technology is growing as governments and individuals consider the use of low-noise and zero-emission aircraft solutions for transport and defense initiatives. At this point, investors are considering whether this deal enhances its overall investment thesis at Archer.