COVINGTON, GA - Archer Aviation Inc. (NYSE: NYSE:ACHR), a $3.85 billion market cap company whose stock has surged nearly 200% over the past six months according to InvestingPro, has announced the opening of its new eVTOL aircraft manufacturing facility in Covington, Georgia, marking a significant step towards the commercial production of its Midnight aircraft. The facility, known as ARC, is situated next to the Covington Municipal Airport and spans approximately 400,000 square feet.
The company received the certificate of occupancy for the ARC facility earlier this week and celebrated with a ribbon-cutting ceremony. Tooling load-in has already begun, with initial production expected to kick off in early 2025. Archer aims to achieve a production rate of two aircraft per month by the end of the same year. The company maintains a strong financial position with a current ratio of 6.03, indicating ample liquidity to fund its expansion plans.
Stellantis (LON:0QXR) N.V. (NYSE: NYSE:STLA), a global automaker, has been closely collaborating with Archer to expedite the mass production of the Midnight eVTOL aircraft. As part of the partnership, Stellantis is set to contribute capital, advanced manufacturing technology, expertise, and experienced personnel. The collaboration is focused on scaling production to 650 aircraft annually by 2030.
Georgia Governor Brian Kemp and Congressman Mike Collins have both expressed their support for the new facility, highlighting the economic benefits and job creation potential for the state of Georgia. The facility represents a shift in the industry from research and development to commercialization.
Archer's Midnight aircraft is designed to provide a sustainable, low-noise, and safe alternative to ground transportation in congested urban areas. The completion of the ARC facility is a testament to the rapid development of the eVTOL industry and its move towards a more environmentally friendly approach to mobility.
This news is based on a press release statement from Archer Aviation. Archer and Stellantis have emphasized their commitment to advancing clean mobility technology through this partnership. Archer's filings with the Securities and Exchange Commission provide further details on the company's forward-looking statements and anticipated business plans. InvestingPro analysis reveals 12 additional investment tips and comprehensive metrics for Archer Aviation, available through their detailed Pro Research Report, which helps investors make informed decisions about this rapidly evolving company.
In other recent news, Archer Aviation has garnered attention with a series of significant developments. Canaccord Genuity has raised its price target for the company following Archer's announcement of an exclusive partnership with defense contractor Anduril Industries. The collaboration aims to develop an unmanned hybrid vertical takeoff and landing (VTOL) aircraft for defense applications, which will be managed under the newly formed Archer Defense segment.
In addition to this, Archer Aviation has secured a multi-party collaboration agreement with entities in the United Arab Emirates (UAE) and Abu Dhabi to establish electric air taxi operations in the region. This makes Archer the first eVTOL aircraft manufacturer in the Middle East and North Africa (MENA) region.
The company also reported a strong liquidity position with over $500 million in cash reserves during its third quarter 2024 earnings call. Archer Aviation is currently progressing with the construction of a manufacturing facility in Covington, Georgia, targeting a production rate of two aircraft per month by the end of 2025.
Finally, Needham initiated coverage on Archer Aviation with a Buy rating, citing the industry's momentum and Archer's capacity to fulfill its substantial aircraft order book. These developments reflect Archer Aviation's ongoing efforts to revolutionize urban air mobility.
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