Pointers at Glance
- Archer Aviation Inc said it aims to make nearly 250 battery-electric air taxis in 2025.
- It will scale up production in the coming years after getting its aircraft certified by the end of 2024.
CEO Adam Goldstein told in an interview that in the first year, they would build 250 aircraft, 500 aircraft in the second year, and in the third year, they would build 650 aircraft. Then, they scale it up to approximately 2,000 aircraft per year.
By the end of 2024, Archer Aviation aims to certify its pilot-plus-four-passenger aircraft, ‘Midnight,’ though the US Federal Aviation Administration (FAA) is still drawing up certification rules for these futuristic aircraft.
JPM analyst Bill Peterson said that in terms of aircraft production, they have estimated in their Archer model ~20 units in 2025. He added that they are not negative on the space but think it will take a little longer to play out with the ramp not as steep as these companies had projected in their SPAC decks over a year ago.
Archer Aviation shares have fallen 54% so far in 2022. Once certified, the California-based start-up’s electric Vertical Take-Off and Landing (eVTOL) aircraft will compete in a crowded market with dozens of other developers like Joby Aviation Inc (JOBY.N) and Vertical Aerospace Ltd (M00.F) vying to revamp urban transportation.
The nascent sector, backed by industrial heavyweights such as Toyota Motor Corp (7203.T) and Delta Air Lines (DAL.N), still faces significant challenges regarding certification, developing a suitable air traffic management system and battery technology improvements, among others.
In May, the FAA said it was modifying its regulatory approach in certifying eVTOLs by defining them as powered-lift aircraft rather than small airplanes, injecting concerns over certification delays.
Goldstein expects the industry to see demand for a thousand eVTOL aircraft yearly.