By Connor Hart


Stellantis will pay up to $400 million to Archer Aviation to scale production of the company's Midnight aircraft.

The investment, which would cover labor costs and fund improvements at the Archer's manufacturing facility, will allow the company ramp up production to 650 aircrafts annually, the San Jose, Calif., company said Thursday.

The new $400 million investment is in addition to the nearly $300 million that the Netherlands-based automotive company has previously invested in Archer.

Chief Executive Adam Goldstein said Archer, which is developing electric vertical take-off and landing aircrafts, is well positioned to meet its goal of commercialization as early as next year.

The company said it has nearly $6 billion in indicative orders with associated pre-delivery payments.

Archer, which said it has secured $230 million of additional equity since the end of the second quarter, additionally on Thursday announced plans for a Los Angeles air-taxi network, which would include vertiports at sites including Los Angeles International Airport and University of Southern California, set to begin operations as early as 2026.

The company, which posted a $106.9 million loss in the second quarter, this month delivered its Midnight aircraft to the U.S. Air Force, fulfilling a prior contract.


Write to Connor Hart at connor.hart@wsj.com


(END) Dow Jones Newswires

08-08-24 1742ET