A significant investor is doubling down on Archer Aviation, however the inventory remains to be down about 39% this 12 months.
Aviation Archer shares make large beneficial properties on Tuesday. The corporate’s shares had been up 8.2% at 3:30 p.m. ET, in line with information from S&P World Market Intelligence.
Shares of Archer Aviation are rising on the information Stellantis made one other funding within the firm. Stellantis’ new $55 million funding follows Archer’s current profitable flight check of its Midnight electrical vertical takeoff and touchdown (eVTOL) plane.
Stellantis is doubling down on Archer Aviation shares
Archer Aviation issued a press launch this morning detailing the most recent spherical of funding from Stellantis, the automotive firm liable for manufacturers comparable to Dodge, Chrysler, Fiat, Jeep and Maserati. The $55 million funding follows Stellantis’ buy of 8.3 million Archer shares in March and a $110 million fairness and strategic financing deal due in 2023.
What’s subsequent for Archer?
In a press launch detailing the Stellantis funding, Archer confirmed that it’s on observe to finish manufacturing in Georgia later this 12 months. In line with the report, the corporate ought to make sure the manufacturing of as much as 650 eVTOL plane per 12 months.
Regardless of at the moment’s beneficial properties, shares of Archer Aviation are nonetheless down about 39% year-to-date, and the corporate continues to endure important losses because it checks its eVTOL plane and appears to ramp up manufacturing capability. For reference, the corporate posted a web lack of $116.5 million within the first quarter of this 12 months and ended the interval with money and equivalents totaling about $406 million. The enterprise stays viable till revenues are generated.
Stellantis’ newest funding represents one other important vote of confidence, however Archer will nonetheless want to search out new methods to lift capital to proceed funding its operations. Accordingly, the corporate will seemingly must promote extra inventory or tackle debt.