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Archer says Stellantis to help fund some air-taxi production costs

Economic Times · 1y ago

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Archer Aviation has reached an agreement-in-principle with Stellantis, under which the automaker will bear up to $370 million of labor-related costs to support Archer's aircraft production. This funding will help Archer produce 650 units of its flagship eVTOL aircraft annually. Archer has also secured an additional $230 million in equity capital, including from Stellantis and United Airlines. However, the eVTOL industry is facing challenges with battery technology and infrastructure, as well as certification to carry passengers. Archer shares rose briefly on the news but later fell, as the company reported another quarterly loss. Archer also plans to launch an air mobility network in Los Angeles by 2026.