News about Archer Aviation

Archer Aviation (ACHR) shares have fallen from about $8 at the start of the year to about $4, but the author argues the company has made real progress. Archer completed Phase 3 of the FAA's four-phase type certification process, becoming the first eVTOL company to do so, and flew more than 70 test flights in August. Its eVTOL revenue remains zero, but it has announced plans to acquire three Boeing (BA) subsidiaries, Wisk Aero, SkyGrid and Insitu, with Insitu, a profitable military drone maker, generating over $200 million in annual revenue. Archer posted just $5 million in revenue last quarter against expenses of about $284 million, and Boeing would receive a substantial stake that dilutes existing shareholders if the deal closes.