Electric plane start-up Archer Aviation (NYSE: ACHR) has hired a former Federal Aviation Administration (FAA) administrator as its chief safety officer. Investors are excited about the credibility the hiring will add, sending shares of Archer up about 20% in Tuesday trading.

Archer is one of several companies racing to develop electric aircraft capable of vertical takeoffs and landings, or eVTOLs. These so-called "flying taxis" aren't big enough to replace commercial aircraft, but could play a valuable role flying over city traffic jams or connecting city airports to nearby suburbs.

It is an intriguing technology with a substantial potential addressable market, but also one with considerable competition. Archer is racing to get a product to market against other start-ups, including Joby Aviation, Lilium, and Vertical Aerospace, as well as big-pocketed aerospace companies including Boeing, Textron, and Embraer.

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Source Fool.com