Archer Aviation (NYSE: ACHR) stock is up 18% in Friday’s trading following reports of a potential ban on Chinese drones by the Commerce Department. This news could limit competition for Archer and highlights their recent entry into the defense industry.

Archer Aviation’s push into the electric flying taxi space could benefit from new regulations and a potential ban on Chinese drones. The company’s partnership with Anduril to create hybrid VTOL flying vehicles for the defense industry could lead to major contracts and stock gains.

Reports of a possible ban on Chinese drones in the U.S. showcase tensions between countries and position Archer Aviation well to capitalize on the growing demand for autonomous crafts in the defense industry. Investors should consider the company’s pioneering role in this emerging space for potential returns.

Read more at Nasdaq: Why Archer Aviation Stock Is Skyrocketing Today