Analyst Summary:
Archer Aviation Inc, a company focused on developing electric vertical takeoff and landing aircraft (eVTOL) for urban air mobility, announced its Q4 and FY 2022 shareholder letter. The company is making significant progress in technology, certification, manufacturing, and commercial operations, including nearing completion of First Build of Midnight Aerostuctures. Also, the company significantly expanded its partnership with Stellantis to manufacture Midnight, which will contribute advanced manufacturing technology and expertise, experienced personnel, and capital. The company aims to begin flight testing in mid-2023. The CEO, Carlos Tavares, stated, "We've been working closely with Archer for the past two years, and I am continually impressed by their ingenuity and unwavering commitment to deliver." Moreover, Archer announced that Stellantis will provide the company with strategic funding of up to $150M to fuel its growth, in the form of equity capital that can be drawn by the company at its discretion in 2023 and 2024, subject to its achievement of certain business milestones which are expected to occur in 2023. The company continues to focus on achieving the most efficient path to commercialization for eVTOL aircraft with a strategy centered around a business case-led technology strategy, aircraft certification, and mass manufacturing. Archer intends to optimize for UAM 20-mile back-to-back trips with a low noise design. The company is building a manufacturing facility in Covington, GA, capable of producing up to 650 aircraft per year, to support production of up to 2,300 aircraft per year.