Los Angeles is known for many things, including heavy traffic. But one company is taking steps to address this long-standing problem with its flying car futuristic technology. Archer Aviation (NYSE:ACHR) has announced a plan to bring its air mobility network to Southern California. This will mean that electric vertical take-off and landing (eVTOL) air taxi rides will be available for LA-based customers within the next two years. This news hasn’t boosted ACHR stock yet but if Archer is able to safely set up ...

Air mobility specialist Archer Aviation (NYSE:ACHR) saw its shares fall sharply, about 6%, despite a spate of positive developments. A manufacturer of electric vertical takeoff and landing (eVTOL) aircraft, Archer just came off better-than-expected results for the second quarter. Also, the company has inked credibility-boosting deals with major enterprises. Still, ACHR stock has printed red ink, likely due to valuation concerns.At first glance, the selloff appears irrational. Yesterday, Archer posted a loss ...

The company is raising capital from existing partners as it ramps up its operations.Archer Aviation (ACHR -9.27%) has secured important new funding from a partner as it moves toward production of its small electric plane. But the funding came at a steep price for existing shareholders.Archer stock is down 10% as of 10:30 a.m. ET on Friday following the announcement.Building the cash pile ahead of productionArcher is one of a handful of companies working to commercialize electric vertical takeoff and landing ...

Financial Data and Key Metrics - The company ended Q2 2024 with $360.4 million in cash and cash equivalents, along with $6.7 million in restricted cash [34] - Total operating expenses for Q2 2024 were $121.2 million on a GAAP basis, including $24.8 million in non-cash equity-related expenses [35] - Non-GAAP operating expenses for Q2 2024 were $96.4 million, slightly above the estimated range of $80 million to $95 million due to material expenses for aircraft production [35] - The company raised an additional $230 million in equity capital, bringing the total raised since the end of Q2 to $230 million [9][34] Business Line Data and Key Metrics - The Midnight aircraft completed its first transition flight in June, marking a significant milestone for the company [6][22] - The company has completed over 230 flights year-to-date and is on track to reach 400 flights by the end of the year [22] - The company is working towards demonstrating a commercial operations-like flight cadence, aiming for up to 15 flights per day [22][40] - The company delivered its first Midnight aircraft to the United States Air Force as part of a $142 million contract [20][23] Market Data and Key Metrics - The company has made significant progress in international markets, including India, Korea, and the UAE, with potential for expedited deployment [8][19] - The company has a nearly $6 billion indicative order book, including a planned purchase of 116 aircraft from Future Flight Global [13][14] - The company is developing air taxi networks in key markets such as the San Francisco Bay Area, Los Angeles, and in partnership with Southwest Airlines [15][16][17] Company Strategy and Industry Competition - The company is focused on a capital-efficient path to market, leveraging partnerships with Stellantis for manufacturing and United Airlines for deployment [5][10][11] - Stellantis has invested over $300 million in the company and will fund up to $400 million in labor and CapEx to scale Midnight manufacturing to 650 aircraft annually [11][12] - The company is targeting a gross margin of 40% to 50% at a production volume of 250 units, with plans to reduce unit costs through supply chain and manufacturing efficiencies [32][33] Management Commentary on Operating Environment and Future Outlook - The company believes the commercialization of electric aircraft is further ahead than many realize, with significant progress in certification and manufacturing [5][8] - The company is confident in its design maturity and is focused on executing its flight test program to bring the Midnight aircraft to market [53][54] - The company sees a unique opportunity for expedited deployment in international markets, particularly in the UAE, where regulatory support is strong [8][19] Other Important Information - The company has reached key regulatory milestones with the FAA, including the finalization of Midnight's airworthiness criteria and the receipt of a Part 135 certificate [7][24] - The company is constructing a high-volume manufacturing facility in Georgia, expected to support production volumes of up to 650 aircraft per year [28][29] - The company is working closely with the U.S. Air Force to explore different use cases for the Midnight aircraft, including medical evacuation and cargo transport [20][23] Q&A Session Summary Question: Flight testing progress and learnings from Midnight aircraft [38] - The company has completed over 230 flights year-to-date, with most flights focused on Midnight, gathering data for piloted flights and operational learnings [39][40] Question: Details on the capital raise and future capital needs [41] - The capital raise was led by institutional investors and strategic partners, including Stellantis and United Airlines, with the goal of reducing cash burn and increasing production capabilities [43][44] Question: Certification progress in the UAE and comparison to FAA [46] - The company is working with the GCAA in the UAE to validate data generated under the FAA certification program, with potential for expedited deployment [48][49] Question: Flight testing and modifications for piloted flights [50] - No modifications are needed for piloted flights, with the company focusing on integrating systems and preparing for real-deal flight testing [51][52] Question: Operational details of the Stellantis manufacturing agreement [56] - Stellantis will cover labor and CapEx costs, with Archer reimbursing Stellantis with stock over time, reducing cash burn and increasing production scalability [57][58] Question: Deposit payments and order book ramp-up [61] - The company expects pre-delivery payments to increase as it gets closer to launch dates, with initial deposits of 1% to 2% and up to 50% in pre-delivery payments [62] Question: Aircraft deployment in Los Angeles for major events [63] - The company is targeting the 2028 Olympics in Los Angeles, with plans to deploy hundreds of eVTOLs, showcasing America's leadership in aviation [64][65] Question: Noise levels in Midnight test flights [66] - Acoustic testing has been in line with predictions, with Midnight expected to be significantly quieter than helicopters [67] Question: Pilot training and certification framework [68] - The FAA is making progress on the SFAR, which will define training requirements, while the company is developing its own pilot training capability [69] Question: Order book and production allocation [70] - The company is focusing on direct sales and partnerships, with plans to introduce aircraft in multiple countries to accelerate global scaling [71][72] Question: Stellantis' equity stake and strategic investor comfort [74] - The relationship with Stellantis is focused on increasing the likelihood of reaching production levels and profitability, with Stellantis taking an increased equity stake [75][76] Question: For-credit testing progress [79] - The company is conducting for-credit testing on system components, with plans to move to for-credit flight testing next year [80][81]

Revenue Generation - The company has not generated revenue from its planned lines of business as it continues to design, develop, and seek governmental approvals for its eVTOL aircraft[166] Research and Development - Research and development expenses increased by $26.5 million, or 41.9%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to increased personnel-related costs and professional services[178] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $121.2 million, a decrease of $60.2 million or 33.2% from the previous year[176] - General and administrative expenses decreased by $86.7 million, or 73.4%, for the three months ended June 30, 2024, mainly due to a prior charge related to the Wisk Warrant[180] - General and administrative expenses decreased by $72.1 million, or 44.5%, for the six months ended June 30, 2024, compared to the same period in 2023[181] Financial Performance - The net loss for the three months ended June 30, 2024, was $106.9 million, a decrease of $77.2 million or 41.9% compared to the same period in 2023[176] - Net cash used in operating activities during the six months ended June 30, 2024 was $167.0 million, resulting from a net loss of $223.4 million[195] - Interest income, net increased by $1.0 million, or 24.4%, and $4.7 million, or 82.5%, for the three and six months ended June 30, 2024, respectively[183] Cash and Financing - As of June 30, 2024, the company had cash and cash equivalents of $360.4 million, with an expectation to incur additional losses and higher operating expenses for the foreseeable future[184] - Net cash provided by financing activities during the six months ended June 30, 2024 was $100.8 million, driven by proceeds from shares issued under the First and Second ATM Programs[199] - The company sold 3,705,137 and 10,275,033 shares of Class A common stock for net proceeds of $14.2 million and $48.1 million, respectively, during the three and six months ended June 30, 2024[186] - The company expects to finance its cash needs primarily through existing cash on hand, pre-delivery payments, equity financing, and debt financing until significant revenue is generated[189] - The company entered into a Credit Agreement for up to $65.0 million for the construction and development of its manufacturing facility in Covington, Georgia[185] Legal Proceedings - The company is currently involved in material pending legal proceedings, but management believes these will not have a material adverse impact on financial position or results of operations[209] Aircraft Development - The company received a Special Airworthiness Certificate from the FAA for its Midnight aircraft in August 2023 and began flight testing in October 2023[158] - The Midnight aircraft is designed to carry 4 passengers plus a pilot for short-distance trips of around 20 miles with minimal charging time[158] - The company has entered into a purchase agreement with United Airlines for up to $1.0 billion worth of aircraft, with an option for an additional $500 million[163] - The company also secured contracts with the United States Air Force worth up to $142 million, which includes aircraft purchases and flight test data sharing[163] Internal Controls - As of June 30, 2024, the company's disclosure controls and procedures were deemed effective by the Chief Executive Officer and Chief Financial Officer[205] - There were no changes in internal control over financial reporting during the quarter ended June 30, 2024, that materially affected the internal control[207] - Management acknowledges that the control system can only provide reasonable assurance, not absolute assurance, regarding the detection of errors and fraud[206] UAM Ecosystem - The company plans to operate its own UAM ecosystem in select major cities, aiming for competitive pricing with ground-based ride-sharing services[162]

SUBSCRIPTION AGREEMENT This SUBSCRIPTION AGREEMENT (this "Subscription Agreement") is entered into as of August 8, 2024, by and between Archer Aviation Inc., a Delaware corporation (the "Company"), and the Stellantis N.V. (the "Investor"). WHEREAS, the Company and the Investor are executing and delivering this Subscription Agreement in reliance upon the exemption from securities registration afforded by the provisions of Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). WHERE ...

eVTOL stock has remained relatively subdued in the last 12 months. I see this as a lull before the storm with some of the best eVTOL companies nearing commercialization.An important point to note is that the flying car industry is at a nascent stage. Estimates suggest that the eVTOL market could be worth $1 trillion by 2040. If this holds true, there is significant room for growth in the coming decade(s).From an investment perspective, the addressable market implies that there will be massive wealth creator ...

It is not too often that investors witness the birth of a new industry. Aviation, however, is on the cusp of transformation. Electric vertical takeoff and landing (eVTOL) aircraft are poised to take over taxiing people on short-haul flights.While we are still years away from seeing electric commercial airliners, what are essentially flying cars can electrify shorter-distance routes that comprise most flights. According to Statista, a regional airline’s average distance is about 500 miles. Ferrying passenger ...

Companies operating in the electric vertical takeoff and landing (eVTOL) market are often known as flying car stocks. Whether these companies are looked at as futuristic Jetsons-like options, or the air taxis of the future of transportation, it really doesn’t matter. The underlying tech sported by the companies on this list is impressive. And it’s true that the future of transportation may be due for a major shakeup. The three flying car stocks on this list stand to disrupt urban mobility for good. As urban ...

Despite market volatility, a swell of good news lifted Archer stock in July.Archer Aviation (ACHR 0.25%) stock surged in July's trading. The company's share price rose 18.5% in the month, according to data from S&P Global Market Intelligence.Thanks to a series of positive developments, Archer Aviation was able to post gains despite volatility in the broader market. The flying-taxi specialist attracted new investment from Stellantis, received positive analyst coverage, and benefited from other bullish cataly ...