Archer’s expenses soar in Q3 amid manufacturing ramp-up
Archer reported widening losses in the third quarter of 2024, as the eVTOL manufacturer continues its push toward commercialisation. The company’s net loss expanded to $115.3m.
Archer’s operating costs witnessed a significant increase during the quarter under review, reaching nearly $122.1m from $46.2m in Q3 2023. The higher costs can be attributed to large investments in manufacturing ramp up plans and certification efforts.
CEO Adam Goldstein emphasised the company’s transition from concept to commercialisation, stating: “Over the past six years, we have established the foundation to allow Archer to seamlessly transition from concept to commercialisation. As we enter the final stretch of bringing Midnight to market, our strategy is paying off.”
On the liquidity front, Archer ended the quarter with $501.7m in cash and cash equivalents, a significant improvement from $360.4m in the previous quarter – providing it with runway for two quarters’ operating expense needs.
In addition to the existing liquidity, the company is currently in discussions with shareholders to secure another $400m from leading global automotive company Stellantis to help scale the production of its Midnight aircraft.
The company achieve several of its objectives during the quarter. The company successfully completed the manufacturing plant on time (pictured above). The plant is set to being production in early 2025.
Meanwhile, Archer reported that it made inroads to expand into international markets. It announced the formation of a consortium in the UAE in partnership with the Abu Dhabi Investment Office with plans to begin operations in the last quarter of 2025.
Beyond that, Archer yesterday announced a $500m aircraft purchase agreement with a joint venture company of Japan Airlines and Sumitomo Corporation. The announcement, coupled with previous agreements in place, has pushed Archer’s order book to $6bn.
