Archer Aviation today announced operating and financial results for the second quarter ended June 30, 2024. The Company issued a shareholder letter discussing those results, as well as its third quarter 2024 estimates. The shareholder letter may be accessed on the Company’s investor relations website here.
Commenting on second quarter 2024 results, Adam Goldstein, Archer’s CEO said: “This has been one of Archer’s most productive quarters yet. From Midnight’s first transition flight, to the progress we’ve made on the build out of high-volume manufacturing facilities alongside Stellantis, to the commercial progress we’re making with Southwest, United, and more—we are working tirelessly to enable commercial operations all over the world. Our indicative order book now sits at nearly $6B. With the additional funding and planned LA network we announced today, Archer is well positioned to meet our goal of commercialization as early as next year.”
Archer announced today that it has reached an agreement in principle on key terms of its planned contract manufacturing relationship with Stellantis. In addition to the nearly USD300 million Stellantis has previously invested to date, including USD 55 million in July 2024, Stellantis is planning to fund the following to help ensure Archer achieves its manufacturing goals:
- Manufacturing Labour: Stellantis to fund up to around USD 370 million of the anticipated manufacturing labour costs necessary to support Archer’s planned manufacturing ramp to 650 aircraft annually. In exchange, Stellantis would receive Archer shares on a rolling quarterly basis based on the total labour costs incurred in a particular quarter and Archer’s then-current future stock price.
- Manufacturing CapEx: Additionally, Stellantis will contribute the identified initial incremental manufacturing capital expenditures for the initial ramp of Midnight production, estimated to be up to USD 20 million.
“Archer’s goal with this relationship is to incentivize Stellantis to help Archer achieve its planned production ramp and unit cost targets,” according to a company press release. “Therefore, Archer intends to issue Stellantis USD 30 million of performance warrants that will vest based on Stellantis’ achievement of certain performance milestones under the contract manufacturing relationship. Archer’s issuance of any equity to Stellantis pursuant to this contract manufacturing relationship is expected to be subject to approval by Archer’s stockholders.
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