Matteo Colombo
Archer Aviation (NYSE:ACHR) fell 7.77% in late Friday morning trading after the company reported Q2 earnings results and updated on financial incentives with Stellantis (STLA).
The company reported a Q2 adjusted EBITDA loss of $93.8 million and an overall net loss of $106.9 million. Along with the earnings update, Archer Aviation (ACHR) announced that it has reached an agreement in principle on key terms of its planned contract manufacturing relationship with Stellantis (STLA). In addition to the nearly $300 million Stellantis (STLA) has previously invested to date, including $55 million in July, the automaker is planning to fund up to $390 million in manufacturing labor and capex to help ensure Archer (ACHR) achieves its manufacturing goals. Looking ahead, Archer (ACHR) intends to issue Stellantis $30 million of performance warrants that will vest based on Stellantis’ (STLA) achievement of certain performance milestones under the contract manufacturing relationship. Archer’s (ACHR) issuance of any equity to Stellantis (STLA) pursuant to the contract manufacturing relationship is expected to be subject to approval by shareholders.
Archer (ACHR) also unveiled plans for a Los Angeles air taxi network. The planned network includes vertiports at key locations such as Los Angeles International Airport, Orange County, Santa Monica, Hollywood Burbank, Long Beach, and Van Nuys.
ARK Invest has been an active buyer of Archer Aviation (ACHR) this year as the company has continued to strike eVTOL deals. On Seeking Alpha, Stone Fox Capital is a strong ACHR bull. “The key investor takeaway is that Archer Aviation is quickly approaching certification of their Midnight eVTOL and the launch of an air taxi service in multiple locations around the globe,” wrote Stone Fox last month.
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