TSLA
Tesla
-- 462.280 NVDA
NVIDIA
-- 140.220 PLTR
Palantir
-- 82.380 AMD
Advanced Micro Devices
-- 126.290 MSTR
MicroStrategy
-- 358.180 
$Archer Aviation (ACHR.US)$ Don’t chase high, for long-term ...
Don’t chase high, for long-term
Summary of Interview: Archer Aviation’s COO Nikhil Goel with Barclays’s Analyst David Zazula:
Key Highlights from Archer Aviation:
1. Production Milestones:
• Archer is building production-ready aircraft at its low-rate facility in California.
• A high-rate production facility near Atlanta, built with support from Stellantis, is weeks away from receiving its certificate of occupancy. Equipment installation and production are expected to begin early next year.
• Stellantis has committed up to $400 million to support manufacturing CapEx and labor until the end of the decade.
2. Commercialization Plans:
• Archer aims to launch its first commercial operations in the UAE by the end of 2024. This effort is backed by Mubadala, the Abu Dhabi Investment Office, and the UAE government.
• Archer is working with the GCAA (General Civil Aviation Authority) to expedite certification and develop necessary infrastructure for launch.
• The U.S. market is also a focus, with plans to scale operations in major urban areas such as New York, Chicago, Los Angeles, and Houston.
3. Regulatory Progress:
• The FAA’s Special Federal Aviation Regulation (SFAR) was signed recently, closing major regulatory gaps for the industry and providing a clearer path to certification.
• Archer has completed phases 1 and 2 of FAA certification, with phase 3 substantially complete and phase 4 (implementation) underway.
4. Order Book and Partnerships:
• Archer’s order book exceeds $6 billion, including deals with Japan Airlines (JAL) and Sumitomo.
• United Airlines has placed up to $1.5 billion in aircraft orders, invested over $60 million, and made a $10 million non-refundable deposit.
• UAE and Japan have both made initial cash deposits to secure orders.
5. Military Applications:
• Archer delivered an aircraft to the U.S. Air Force under the Agility Prime program, gaining exposure and potential for military use cases like VIP transport and cargo logistics.
6. Stellantis Partnership:
• Stellantis has provided expertise in manufacturing, automation, and supply chain management, significantly reducing costs and enhancing efficiency.
• The Atlanta facility, supported by Stellantis, is designed to produce up to 650 aircraft annually with a capital-efficient setup.
7. Operational Readiness:
• Archer plans to deploy aircraft strategically, starting with UAE and key U.S. cities based on regulatory readiness and partnership commitments.
• All aircraft will be piloted from day one, with operations starting in urban environments under FAA “market survey” permissions.
8. Route and Battery Requirements:
• Archer’s aircraft are designed for 20–50-mile routes, aligning with FAA’s 20-minute battery reserve requirement for visual flight rules (VFR).
• Virtually all planned routes fall within the reserve limits, ensuring operational feasibility.
9. Future Growth:
• Archer is focused on scaling production and securing more regulatory approvals in both domestic and international markets.
• The company is leveraging partnerships with United Airlines, Stellantis, and UAE-based entities to enhance commercialization and infrastructure development.
Conclusion:
Archer Aviation is progressing steadily toward commercialization, with strong partnerships, regulatory momentum, and an order book of over $6 billion. Its focus remains on scaling production, achieving FAA certification, and launching operations in key markets like the UAE and the U.S. The company has strategically partnered with major players like Stellantis and United Airlines, positioning itself for long-term success in the emerging eVTOL industry.
Key Highlights from Archer Aviation:
1. Production Milestones:
• Archer is building production-ready aircraft at its low-rate facility in California.
• A high-rate production facility near Atlanta, built with support from Stellantis, is weeks away from receiving its certificate of occupancy. Equipment installation and production are expected to begin early next year.
• Stellantis has committed up to $400 million to support manufacturing CapEx and labor until the end of the decade.
2. Commercialization Plans:
• Archer aims to launch its first commercial operations in the UAE by the end of 2024. This effort is backed by Mubadala, the Abu Dhabi Investment Office, and the UAE government.
• Archer is working with the GCAA (General Civil Aviation Authority) to expedite certification and develop necessary infrastructure for launch.
• The U.S. market is also a focus, with plans to scale operations in major urban areas such as New York, Chicago, Los Angeles, and Houston.
3. Regulatory Progress:
• The FAA’s Special Federal Aviation Regulation (SFAR) was signed recently, closing major regulatory gaps for the industry and providing a clearer path to certification.
• Archer has completed phases 1 and 2 of FAA certification, with phase 3 substantially complete and phase 4 (implementation) underway.
4. Order Book and Partnerships:
• Archer’s order book exceeds $6 billion, including deals with Japan Airlines (JAL) and Sumitomo.
• United Airlines has placed up to $1.5 billion in aircraft orders, invested over $60 million, and made a $10 million non-refundable deposit.
• UAE and Japan have both made initial cash deposits to secure orders.
5. Military Applications:
• Archer delivered an aircraft to the U.S. Air Force under the Agility Prime program, gaining exposure and potential for military use cases like VIP transport and cargo logistics.
6. Stellantis Partnership:
• Stellantis has provided expertise in manufacturing, automation, and supply chain management, significantly reducing costs and enhancing efficiency.
• The Atlanta facility, supported by Stellantis, is designed to produce up to 650 aircraft annually with a capital-efficient setup.
7. Operational Readiness:
• Archer plans to deploy aircraft strategically, starting with UAE and key U.S. cities based on regulatory readiness and partnership commitments.
• All aircraft will be piloted from day one, with operations starting in urban environments under FAA “market survey” permissions.
8. Route and Battery Requirements:
• Archer’s aircraft are designed for 20–50-mile routes, aligning with FAA’s 20-minute battery reserve requirement for visual flight rules (VFR).
• Virtually all planned routes fall within the reserve limits, ensuring operational feasibility.
9. Future Growth:
• Archer is focused on scaling production and securing more regulatory approvals in both domestic and international markets.
• The company is leveraging partnerships with United Airlines, Stellantis, and UAE-based entities to enhance commercialization and infrastructure development.
Conclusion:
Archer Aviation is progressing steadily toward commercialization, with strong partnerships, regulatory momentum, and an order book of over $6 billion. Its focus remains on scaling production, achieving FAA certification, and launching operations in key markets like the UAE and the U.S. The company has strategically partnered with major players like Stellantis and United Airlines, positioning itself for long-term success in the emerging eVTOL industry.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
In the midst of chaos, there is also opportunity - The Art of War
175Followers
43Following
528Visitors
Follow