Cathie Wood of Ark Invest is best known for her high conviction in emerging themes, disrupting sectors such as technology or life sciences. While Wood has earned her share of media coverage, I’ll admit that sometimes I find her investment takes to be somewhat far-fetched.

Recently, I noticed that Ark Invest has added a significant chunk to its position in electric takeoff and landing company Archer Aviation (NYSE: ACHR). With shares of Archer trading for just $3.26 as of this writing, is Wood getting a good deal? Let’s dig in and find out.

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In some ways, Ark’s ownership of Archer stock makes a lot of sense. Wood was an early bull on Tesla, often publishing research with stock price targets for the electric vehicle (EV) maker that seemed completely disconnected from reality — that is, until Tesla eclipsed those price ranges despite widespread skepticism from those less optimistic on the company’s potential.

To me, Archer represents a different form of exposure to the broader EV sector — one that’s tangential to Tesla. While this notion might support the idea of investing in Archer, Wood’s recent buying activity suggests that she is more than a little optimistic about the company.

Between Oct. 28 and Oct. 30, Ark scooped up 2.5 million shares of Archer, spread across three separate purchases. Given Archer’s seemingly low stock price, it may look like Wood is buying the dip on a potentially lucrative opportunity set to disrupt the EV market.

In my eyes, Archer is stuck between proof-of-concept and product-market fit. Anecdotally, I am intrigued by the idea of airborne EV taxis augmenting mobility patterns — particularly in more densely populated environments such as cities.

But with that said, Archer hasn’t gotten enough traction yet to really prove if its vision is sustainable. I say that because despite its billion-dollar book of purchase orders, the company is yet to recognize $1 of revenue yet.

So long as sales aren’t coming through the door, Archer will continue racking up costs in the form of hefty capital expenditures (capex) and ongoing research and development (R&D).

Just as Tesla isn’t the only EV car manufacturer, Archer’s presence in the electric takeoff and landing vehicles is not exclusive. The company competes heavily with Joby Aviation, another position in Ark’s portfolio — and one that Wood also scooped up shares in around the same time as her recent Archer purchases. There ae also several other private competitors.

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