Shares of Archer Aviation Inc (NYSE:ACHR) are up 18.6% at $6.63 this morning, after the drone company announced it will acquire three Boeing (BA) subsidiaries, giving Boeing a 19.75% stake in Archer.
Archer Aviation (NYSE:ACHR | ACHR Price Prediction) stock is surging 19% to $6.63 Monday morning after the eVTOL developer announced a landmark transaction with Boeing (NYSE:BA).
Archer Aviation ACHR shares surged nearly 15% on Monday after the announcement that the electric air taxi maker would acquire Boeing's autonomous aviation unit Wisk Aero, along with drone business Insitu and airspace technology provider SkyGrid. The all-stock transaction will leave Boeing with a nearly 20% stake in the combined company while also giving the aerospace giant continued access to Wisk's autonomous flight technology through a long-term collaboration agreement.
Boeing is selling three of its subsidiaries to Archer Aviation in exchange for an undisclosed stake in the eVTOL startup. The transaction strengthens Archer's position developing eVTOLs and the networks to support them and helps it extend its military portfolio.
The jet maker is selling Wisk Aero, SkyGrid and Insitu in exchange for shares in the California startup.
Boeing is making tangible progress on sustainable production growth, with Q2 revenue up 8% and free cash flow turning positive. I maintain a Buy rating and a $321.75 price target, citing improving cash flow, disciplined balance sheet repair, and clearer recovery milestones. Execution risks persist in Commercial Airplanes and Defense, but production, certification, and cash flow trends increasingly support the 2028 recovery case.
The Federal Aviation Administration has ordered the inspections of Boeing 737 Max jets for cracks of a component that could affect the structural integrity of the planes.
Monday's surge was enough to push Boeing's stock into the positive for the year, as it is now up 5.7% since the start of 2026, when shares traded around the $227 mark.
Boeing and Airbus are both showing notable improvements in aircraft deliveries, with Airbus leading in both orders and delivery volumes. Airbus secured 821 net orders versus Boeing's 408 in the first half of 2026, translating into a $12.6 billion order value lead for Airbus. Combined deliveries have nearly recovered to pre-crisis levels, with Airbus already in growth mode and Boeing still in recovery, trailing by roughly three years.
Shares of Boeing were rallying more than 6% to lead the Dow's gainers after the aerospace and defense company cleared an important regulatory hurdle on Monday.
This is a developing story. Check back for updates.
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