Archer Aviation is developing the Midnight electric vertical takeoff and landing (eVTOL) aircraft for urban air taxi services, with a substantial order book and cash reserves. Stellantis has invested heavily in Archer since 2021, enhancing its manufacturing capabilities and expediting FAA certification for Archer's aircraft. However, Stellantis recently halted its hydrogen fuel cell program due to high costs and market challenges, raising concerns over potential funding implications for Archer. The shift in Stellantis’ focus toward electrification reflects a broader strategy for carbon neutrality by 2038.
Archer Aviation is leading the charge in developing electric vertical takeoff and landing (eVTOL) aircraft, particularly with its Midnight model aimed at urban air taxi services. The company has secured a $6 billion order book and has $1.03 billion in cash, positioning itself for commercial operations later this year.
Stellantis has invested over $254 million in Archer since 2021, including a recent $55 million tied to Archer's flight test milestone. This relationship has contributed to Archer's accelerated path toward FAA certification.
The recent decision by Stellantis to end its hydrogen fuel cell vehicle program is part of its strategy for achieving carbon neutrality by 2038, as factors such as high development costs and limited market demand have hindered progress in hydrogen technology.
Despite the promising partnership with Archer, Stellantis’ reported expected loss of 2.5 billion euros has raised concerns about the potential impacts on future funding for Archer, especially considering Stellantis’ shift from hydrogen vehicles to electrification.
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