Flying cars is the new normal, said no one except for The Jetsons. The transport segment is seeing a shift from fossil to electrical. Moreover, increasing vehicles are leading to hefty traffic and time consumption. Stellantis (NYSE: STLA), an automotive company coming out of Fiat Chrysler Automobiles and French PSA Group merger, is giving a push to eliminate this scenario.
Sounds Like Jetsons in 1962
CNBC reported that the company will help Archer Aviation (NYSE: ACHR) to achieve their target to manufacture flying vehicles by 2025. Following the news, STLA stock jumped and closed at over 3% higher than the previous day close, meanwhile ACHR stock rose by almost 10%. Both the company CEOs, Carlos Tavares (Stellantis) and Adam Goldstein (Archer Aviation) affirmed the merger during a CNBC interview.
Stellantis has developed EVs in the past through brands like Dodge, Chrysler and more. Now the company is stretching their operations to a higher altitude with eVTOLs. Tavares said that the organization has robust finances and tech to grow amid the recession fears.
Flying taxis sound magical, while its electrical version sounds ecological. Still, flying EVs need to deal with the charging infrastructure. While you can stop and roll a discharged car by pushing it, a discharged eVTOL in mid-air is as useful as water in a petrol tank. The “vertistops” — charging stations on building tops — is a solution to aerial charging infrastructure.
STLA Stock Price Analysis
The chart shows that company shares have an extremely volatile nature. Current price indicates an over 30% decline since the yearly high of $22 in January 2022. There’s a resistance level around $15.5 and $16 during the semi-annual trend starting June 2022, and support level at $11.5 and $11.
Regression channel shows there’s still scope for buyers while relative strength index (RSI) indicates an oversold position. The price is well above the Anchored VWAP and points the same. With this merger, the company can focus on the future trends to become one of the early pioneers conquering higher altitudes.
Flying vehicle market may boom considering the factors mentioned in the beginning. The demand may rise if we see a similar scenario. However, the company still has to stand against the industry mammoths like Uber Technologies (NYSE: UBER), Boeing Company (NYSE: BA).
According to research this market is tend to grow at a CAGR of 58.1% during 2022 and 2040 to become a $1.5 Trillion industry. Moreover, the market will deal in around 3 segments including civil, commercial and military.
Disclaimer
The views presented in the article solely belong to the writer and do not offer any investment advice to the readers.
Source: https://www.thecoinrepublic.com/2023/01/05/can-aerial-evs-lift-stla-stock-in-a-long-run/