Boeing Sells eVTOL Businesses to Archer Aviation for Nearly 20% Stake

Boeing has made a significant move in its turnaround efforts by selling three of its eVTOL and aerospace technology businesses to Archer Aviation. The deal, announced on August 10, will give Boeing nearly 20% ownership of Archer Aviation.

The businesses being sold include Wisk, an eVTOL builder; Insitu, a drone maker; and SkyGrid, an air-traffic software company. In exchange for these assets, Boeing will receive a combination of newly issued shares and warrants in Archer Aviation.

This deal is seen as a strategic move by Boeing to remove potential distractions from its core business and focus on getting its commercial aircraft business back on track. The 737 MAX 7 recently received Federal Aviation Administration (FAA) approval, marking significant progress in this area.

However, the market appears to have already priced in Boeing's turnaround efforts, with the stock trading at a premium of around 77 times trailing-12-month earnings.