Cathie Wood and her company Ark Invest on Tuesday shared part of their Tesla (TSLA) holdings and loaded on emerging drone maker Archer Aviation (ACHR). Tesla shares rose early Wednesday morning, while ACHR shares rose slightly.
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Wood and Ark Invest sold a total of 62,867 Tesla shares worth $14.538 million on Tuesday, based on the closing price of 231.26, according to daily trading updates from the firm. Wood sold more than 56,000 shares of the ARK Innovation ETF (ARKK), while divesting the rest from the ARK Next Generation Internet ETF (ARKW).
Tesla’s stock rose 10.2% on Tuesday after Elon Musk’s EV company beat expectations for the second quarter despite a 4% drop in deliveries from last year.
Eyes on the sky
Meanwhile, Wood and ARK bought 406,912 shares of Archer Aviation on Tuesday worth $1.51 million, based on a closing price of 3.72.
San Jose-based Archer develops electric vertical takeoff and landing (eVTOL) vehicles for urban environments, with the goal of creating a robust air taxi service.
Archer Aviation on Tuesday secured an additional $55 million investment from Stellantis (STLA) through a strategic financing agreement. Stellantis invested $110 million in Archer in 2023 through a series of open market share purchases and investments through the strategic agreement. The investment comes after Archer completed a major test flight for its Midnight aircraft on June 8.
The company announced on June 5 that it had received FAA certification to launch a commercial airline. And on June 17, Archer reached an agreement with Signature Aviation, giving it access to the world’s largest network of private airport terminals. Under the deal, Archer plans to launch air taxi services on United Airlines (UAL) hubs at Newark International and Chicago O’Hare airports as early as late 2025. The agreement also gives Archer access to takeoff and landing sites in New York, Los Angeles, San Francisco and Texas.
Signature Aviation operates more than 200 private terminals worldwide. Archer plans to expand the network as aircraft availability increases, the company said.
Archer announced on June 20 plans for an air mobility network at five locations in the San Francisco Bay Area.
Wood and ARK also added 3,788 shares on Tuesday BLADE Air Mobility (BLDE), another company trying to expand its urban air mobility network. BLADE offers a mix of helicopter and charter jet services, rather than eVTOLs. But the company says it is preparing for the adoption of electric vehicles.
Other manufacturers of eVTOL drones include: Eve Air Mobility (EVEX), a spin-off of the Brazilian fighter jet manufacturer Embraer (ERJ). And China-based EHang Holdings (EH) is developing an unmanned air taxi service.
Tesla Stock, ACHR Action
Tesla shares rose more than 2% premarket on Wednesday. TSLA shares are on track for their seventh straight daily gain if the early move holds.
Tesla shares are down 6.9% in 2024 through Tuesday.
ACHR shares rose 2.2% on Wednesday morning. Archer shares rose 8.8% on Tuesday to recover above their 50-day moving average.
However, ACHR shares are down 39.4% this year through Tuesday’s close.
BLDE stock was trading sideways Wednesday morning after rising 2.7% Tuesday. BLADE stock is down 3.9% this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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