Stellantis Invests Additional $55M in Electric Air Taxi
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Stellantis NV has invested an additional $55 million in the electric air taxi company Archer Aviation Inc. following a recent successful test flight and other major milestones for the California-based company.
The maker of Dodge, Chrysler, Jeep and Ram vehicles previously had purchased 8.3 million shares of Archer stock in March, and last year invested a combined $110 million in the firm through both stock purchases and investments under a funding deal set up between the companies.
“With this additional investment in Archer, we remain on course for a future where freedom of mobility extends beyond today’s roads,” Stellantis CEO Carlos Tavares said in a statement.
Stellantis and Archer said in a joint announcement July 2 that the most recent infusion of cash followed a successful test flight on June 8, where Archer’s Midnight aircraft successfully transitioned from taking off like a helicopter to flying like an airplane, before decelerating and landing vertically.
TRANSITION FLIGHT | Midnight has completed transition flight at a speed of 100+ MPH – taking off vertically, accelerating until it transitions from thrust-borne to wing-borne flight, cruising on the wing and then landing again vertically. Here are the key highlights from this… pic.twitter.com/WquNUWE0PN — Archer (@ArcherAviation) June 12, 2024
Archer is one of several companies hoping to develop a commercial electric air taxi, also known as an electric vertical takeoff and landing aircraft, or eVTOL, that could revolutionize urban travel in congested cities, especially speeding up the commute to and from major airports.
The Santa Clara, Calif., company has recently hit several major milestones beyond the successful test flight, including key Federal Aviation Administration approvals. The company has an agreement with United Airlines to operate the air taxis, and lined up a deal with private aviation terminals where it could eventually base the planes.
#Stellantis boosts its partnership with @ArcherAviation by injecting an additional investment of $55 Million! This strategic boost adds to Stellantis $39 million stock acquisition in early 2024 and to the $110 million investment made in 2023. Read more: https://t.co/s3uql554zX. pic.twitter.com/w9Cf25zCCI — Stellantis (@Stellantis) July 2, 2024
Meanwhile, Archer said it’s on track to finish a manufacturing facility in Georgia later this year. The first phase, of about 350,000 square feet on 100 acres, should support production of 650 of its Midnight aircraft each year, the company said. Archer is tapping Stellantis’ car manufacturing expertise on the project and plans to use the automaker as its contract manufacturer.
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Archer CEO Adam Goldstein said Stellantis’ backing, both its investments and manufacturing expertise, had helped accelerate his company’s progress.
The Midnight is a four-passenger aircraft that the company hopes can do fast back-to-back flights, and cut commutes of an hour or two to 10 or 20 minutes.
The two sides said their partnership began in 2020, with Stellantis’ first investment coming in 2021. Archer has been tapping into Stellantis’ manufacturing, supply chain, and design expertise as well, the two sides said.
