Cathie Wood‘s firm Ark Invest sold some of its shares in EV maker Tesla (TSLA) and bought shares of drone maker Archer Aviation (ACHR). Tesla stock jumped on Wednesday, while ACHR shares also saw a spike.
Ark Invest sold a total of 62,867 Tesla shares worth $14.538 million, with most coming from the ARK Innovation ETF (ARKK) and the rest from the ARK Next Generation Internet ETF (ARKW). On the other hand, it purchased 406,912 shares of Archer Aviation, valued at $1.51 million.
Archer is working to develop electric vertical takeoff and landing (eVTOL) vehicles for urban air-taxi services. Recently, Archer secured an additional $55 million investment from Stellantis and completed a key test flight for its Midnight aircraft.
The company also received FAA certification to operate a commercial airline and reached an agreement with Signature Aviation for access to private aviation terminals. It is also planning to launch air taxi services at major airports by late 2025.
Is ACHR Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on three Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 11% decline in its share price over the past year, the average ACHR price target of $7.63 per share implies 76.62% upside potential.
