Stellantis completed an open market purchase of around 8.3 million shares of San Jose, California-based startup Archer Aviation Inc., a developer of electric vertical take-off and landing aircraft, the automaker announced in a press release last week. The share purchase follows a recent visit to Archer’s headquarters and manufacturing facility in Santa Clara, California, by Stellantis CEO Carlos Tavares.
Archer’s stock is listed on the New York Stock Exchange. Its shares were trading at $4.76 the day of the announcement, meaning the latest Stellantis investment equated to about $39.5 million.
Stellantis has been a strategic partner to Archer since 2020 and became an investor in 2021. In January 2023, Stellantis announced it would provide up to $150 million of equity capital for Archer to draw at its discretion in 2023 and 2024. The aim of the investment was for Stellantis to become Archer’s exclusive contract manufacturer and mass produce its eVTOL aircraft.
Archer is among a handful of startups working on zero emissions, battery-powered eVTOL aircraft, which are often referred to as or “flying cars” or “air taxis” that may one day shuttle urban commuters through the skies, avoiding traffic and reducing travel times from hours to under 10 minutes in some cases. Archer believes that traveling in eVTOL aircraft may eventually cost around the same as ground-based transportation.
“Archer has established itself as a market leader in the electrification of aviation and we believe that together we can usher in the next transportation revolution,” said Tavares in a press release. “This recent move by Stellantis signals our confidence in Archer’s team and the progress we see firsthand through our deep partnership.”
Archer aims to bring its first eVTOL aircraft, dubbed “Midnight,” to market beginning in 2025. It’s designed to carry up to four passengers plus a pilot at speeds of up to 150 mph. The aircraft is optimized for round trip flights of around 20-50 miles with a charging time of approximately 10 minutes between stops.
Archer plans to build the Midnight at its factory in Georgia, which is currently under construction. The plans for phase 1 include building a 350,000 square feet facility to support production of up to 650 eVTOL aircraft annually.
Stellantis’ investment in 2023 was also intended to help Archer to commercialize its aircraft and avoid hundreds of millions of dollars of spending, according to Stellantis. The automaker says it will contribute its manufacturing technology and expertise, including personnel and working capital to begin eVTOL aircraft manufacturing in Georgia.
“We are on the cusp of changing the way the world moves in the sky,” said Adam Goldstein, founder and CEO of Archer, in a press release. “Archer and Stellantis are working side by side to realize a once-in-a-generation opportunity to redefine urban transportation and deliver tremendous value to the world’s cities and our shareholders.”
Other companies working on eVTOL aircraft include Joby Aviation, Volocopter, Wisk and Lilium. To date, Toyota Motor Corp. has invested around $400 million in Joby Aviation and remains its biggest shareholder. In April 2023, Toyota signed a long-term agreement with Joby to supply powertrain and actuation components for the company's eVTOL aircraft.
Archer says it's currently building an eVTOL aircraft that will be used for flight testing by the Federal Aviation Administration. The company’s goal is to obtain FAA type certification in 2025.
