Midnight, an all-electric aircraft from company Archer Aviation, is seen at the Salinas Municipal Airport in Salinas, California, on Aug. 2, 2023.
Carlos Barria | Reuters
Archer Aviation‘s stock dropped about 15% on Friday after the air taxi maker said it sold $850 million worth of shares.
The electric vertical takeoff and landing vehicle, or eVTOL, company said Thursday it plans to use the financing to support new infrastructure and the rollout of an artificial intelligence-based aviation software platform. The money will also support its Launch Edition program, including an official partnership to provide air taxi services during the 2028 Olympics in Los Angeles.
Archer said the funding round included the sale of 85 million shares at $10 apiece and gives the company a pro forma liquidity position of roughly $2 billion.
“We now have the strongest balance sheet in the sector and the resources we need to execute both here in the U.S. and abroad,” said founder and CEO Adam Goldstein in a release. “Archer’s future couldn’t be any brighter.”
The stock offering comes after President Donald Trump recently signed an executive order that created a pilot program to support developing and deploying more eVTOL vehicles in the U.S. Shares of both Archer and competitor Joby Aviation rallied this week on the heels of the news.
Demand for eVTOL companies has ballooned in recent years as developers tout the technology’s ability to reduce emissions and cut down traffic congestion. The technology faces numerous regulatory and safety hurdles in the process.
Archer has already partnered with United Airlines to roll out an airport air taxi service. Last month, competitor Joby Aviation said it received the first $250 million from a $500 million contract with carmaker Toyota to support certifying and producing eVTOLs.
Archer is slated to display its Midnight eVTOL aircraft at the Paris Air Show this month. The United Arab Emirates will be the company’s first launch market.
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