Industrials and Manufacturing Sector

Boeing is selling three of its autonomous flight and aerospace subsidiaries to Archer Aviation in exchange for a 19.75% stake in Archer's Class A shares. The transaction transfers Wisk Aero, drone maker Insitu, and air traffic software firm Skygrid to Archer, alongside an agreement for Boeing to invest up to $55 million in stock in Archer's next funding round before March 31, 2027. The deal cuts loose non-core subsidiaries as Boeing manages a substantial backlog spanning commercial plane orders. For Archer, acquiring the units absorbs Wisk's autonomous flight intellectual property and Insitu's established defense portfolio, which generates over $200 million in annual revenue across 35 countries. The asset transfer also resolves the corporate lineage of a past patent dispute, making Wisk the core autonomy provider for Archer's aircraft while granting Boeing ongoing access to the technology for its own commercial and defense programs. The transaction is slated to close by the end of 2026, pending regulatory clearances including the Hart-Scott-Rodino Act.

According to cnbc.com, electric-powered vehicles continue to tighten their grip on China's fiercely competitive car market, capturing 65.1% of new passenger car sales in July. Autohome industry data shows Geely's Xingyuan electric hatchback led the market as the bestseller with nearly 197,500 units sold in the six months through July at a price just under 100,000 yuan, or $14,820. Tesla secured the second spot with over 180,000 Model Y units sold despite a steeper price tag ranging from 263,500 yuan to 313,500 yuan. Meanwhile, BYD's highest-ranking vehicle, the Yuan UP SUV, managed only fifth place with nearly 97,700 units sold during the same period, while the Chinese car giant's overall passenger car sales dropped by more than 10% in the first half of the year. Traditional foreign automakers are steadily losing ground, leaving Volkswagen's compact gasoline-powered Lavida as the sole non-Chinese traditional foreign model in the top 10.

Joby Aviation is buying defense technology company Resonant Sciences for $500 million, funding the deal with $450 million in cash and $50 million in stock. Resonant, based in Dayton, Ohio, designs radio-frequency and mission systems for U.S. national security customers—sensors, antennas, and signal-processing technology that help aircraft see, communicate, and operate in contested environments. The deal closes in early 2027. This is a pivot born of necessity. Joby's air taxi business, the original draw, remains stuck in regulatory limbo; the company posted a $245.4 million net loss on $38.6 million in revenue in Q2 2026. Military contracts, by contrast, are available now. Resonant's products already qualify across more than 20 commercial and defense airframes, and its workforce carries military clearance. Upon closing, Resonant becomes Joby's dedicated defense division, while the commercial air taxi unit stays separate. Joby gains Resonant's radio-frequency, sensing, and mission systems expertise to pair with its own propulsion and autonomy technology—the company says it intends to design stealth aircraft from the combination. Resonant's 250 employees and roughly 1 million square feet of manufacturing and testing space in the Dayton region give Joby immediate scale in defense. The stock fell 6.5 percent in premarket trading, a signal that investors view the military pivot as a bet against near-term commercial success. Consolidation is accelerating across the sector: Archer Aviation unveiled a new aircraft co-developed with defense firm Anduril last month, and Boeing is selling three eVTOL subsidiaries to Archer. For Joby, the math is simple—military revenue today beats air taxi revenue that may never arrive.