Archer Aviation, a prominent player in the electric vertical takeoff and landing (eVTOL) industry, has secured an impressive $1.3 billion in funding. This substantial investment comes from a diverse group of stakeholders, including auto manufacturer Stellantis, United Airlines, and Southwest Airlines, among others. With their backing, Archer Aviation is poised to revolutionize urban transportation and pave the way for the era of flying taxis.
While the company has already amassed contracts worth billions of dollars from aircraft operators eager to acquire their innovative product, the focus now shifts towards scaling up mass production. The success of this endeavor, coupled with the presence of substantial consumer demand, may see flying taxis become a tangible reality before the decade draws to a close.
In a recent flurry of fundraising activities within the travel industry, Archer Aviation stands out, having raised an impressive $230 million in equity capital. This figure includes a significant investment of $55 million from auto manufacturer Stellantis in July, followed by an additional $175 million contributed by both Stellantis and United Airlines. The funds will be allocated towards working capital and general corporate purposes, enabling Archer Aviation to further solidify its position as a leading eVTOL manufacturer.
Moreover, Archer Aviation has solidified its manufacturing capabilities through a $400 million contract with Stellantis. Under this agreement, Stellantis will support Archer Aviation in scaling up production operations, with a target of manufacturing 650 aircraft annually. By shouldering manufacturing labor costs and certain capital expenses, Stellantis has demonstrated its commitment to helping Archer Aviation realize its ambitious goals.
With substantial financial backing and key partnerships in place, Archer Aviation is well-positioned to challenge the status quo and create a future where flying taxis are an integral part of urban mobility. The stage is set for Archer Aviation to soar to new heights as the eVTOL industry takes flight.