Shares of electric air taxi developers Archer Aviation and Joby Aviation rallied sharply yesterday, October 6, after a series of cryptic posts by EV maker Tesla on X. The posts prompted speculation that Elon Musk’s company could be eyeing the air mobility market.

Details

Shares of Archer Aviation, a mid-cap developer of eVTOL aircraft, jumped 17.9% to $13.64 per share yesterday, while its larger peer Joby Aviation rose 7.2% to $19.57 per share, its highest close since April.

In premarket trading today, both stocks have moved lower, with Archer down 3.8%.

The rally was driven by a series of enigmatic posts by Tesla on X, announcing an upcoming event scheduled for today. One post featured a short video of a spinning wheel with the Tesla logo, interpreted by some investors as resembling a rotor from a drone or aircraft, potentially signaling news relevant to the eVTOL sector, Barron’s reported. Another post read: “Long-distance travel with FSD Supervised will make you feel like you just teleported.”

However, the consensus view is that Tesla’s announcement will concern a lower-priced EV model expected to reach the market in the coming months. Barron’s noted that while Musk has previously spoken about aviation and America’s need to expand drone production, he has not hinted at any imminent project or partnership in that field. The publication cautioned that investors should not draw conclusions based on an eight-second video.

Stock performance

Over the last 12 months, Archer’s shares have gained 358%. Six Wall Street analysts rate the stock a “buy” versus one “hold,” according to MarketWatch. The average target price of $13.57 per share is slightly below current market levels.

Joby’s shares are up 229% year to date. Four analysts rate the stock a “hold,” two recommend “sell,” and one recommends “buy.” The consensus target price of $13.00 per share also remains below current quotes.

The AI translation of this story was reviewed by a human editor.

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