eVTOL developer Archer Aviation shared an exciting Q2 2023 financial results call complete with three signification updates, including airworthiness certification from the FAA and a fresh round of investments from some big names like Stellantis and United.
Archer Aviation ($ACHR) is an electric vertical takeoff and landing (eVTOL) aircraft developer that continues to inch closer to getting its unique-looking “Midnight” aircraft into the air since unveiling it last December.
Since its genesis a mere five years ago, Archer Aviation has established working relationships and significant investments from the likes with United Airlines, and the US Air Force – a partnership that recently enabled an eVTOL purchase contract from the US Department of Defense for up to $142 million.
Another longtime investor in Archer has been multinational automotive conglomerate Stellantis, who announced it would exclusively help build the Midnight eVTOLs on US soil at a new US facility in Covington, Georgia. As of June, the facility’s progress had since entered the “execution phase” per an update from Archer which also included an additional stock purchase from Stellantis to increase its stake in the eVTOL developer.
With prototype Midnight eVTOLs beginning to roll off assembly lines, Archer Aviation appears poised to reach commercial operations by 2025 as planned. The company’s recent Q2 report should only instill more confidence in its quest as well. Here’s the latest.
Archer Aviation’s funding eclipses $1 billion to date
Per a release from Archer following its Q2 2023 financial report, it has secured an additional $215 million equity investment led by Stellantis while also including other notable companies like Boeing, United, and ARK Invest. To date, Archer says its total funding is over $1.1 billion, offering plenty of runway to scale (but who needs runways with eVTOLs, amirite?).
During its call with investors, Archer also reported that the Midnight eVTOL has received its Special Airworthiness Certificate from the Federal Aviation Administration, meaning the aircraft meets all FAA safety requirements and can begin flight tests. Archer followed up by saying it expects those tests to begin in a matter of weeks as it prepares for piloted “for credit” testing of the Midnight aircraft with the FAA in early 2024. Per Archer Aviation founder and CEO Adam Goldstein:
Over the last quarter, we’ve seen the US government make an unwavering commitment that America will lead the way in commercializing eVTOL aircraft, the FAA validated the timeline for eVTOL aircraft to begin operations in the US in 2025, and leaders in the mobility industry, Stellantis, United Airlines and Boeing, have come together to invest in Archer’s future. The pace at which our industry is advancing is unprecedented. Our team’s hard work and dedication have brought us to this exciting moment, and we can’t wait to see Midnight soar.
Lastly, Boeing was part of a third big announcement made during the Q2 report. The company’s participation in Archer’s latest investment round follows months of litigation in which Archer was previously suing Boeing over an alleged “smear campaign.” Both parties, alongside autonomous aviation and Boeing subsidiary Wisk, announced they have reached settlement and have begun a collaboration that “looks forward to the growth and development of the AAM industry.”
As of June 30, 2023 Archer had $407.6 million in cash, cash equivalents, and short-term investments.
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