June 13 – Archer Aviation (NYSE:ACHR) shares slid about 15% on Friday after the company sold $850 million of stock to support new infrastructure and an AI-based aviation software platform.
The eVTOL maker sold 85 million shares at $10 each, lifting its pro forma liquidity to roughly $2 billion. The proceeds will back its Launch Edition program, including plans to provide air taxi services at the 2028 Los Angeles Olympics.
This follows an executive order establishing a U.S. pilot program for electric vertical takeoff and landing vehicles, which had earlier lifted Archer and rival Joby Aviation (NYSE:JOBY). Archer said it will deploy AI-driven flight management tools and expand infrastructure domestically and overseas.
The company plans to display its Midnight eVTOL at the Paris Air Show, with the United Arab Emirates as an initial market. Archer highlighted its strengthened balance sheet but investors weighed dilution from the share sale against growth prospects.
While interest in eVTOL services is rising amid urban mobility initiatives, regulatory and safety challenges persist. Market participants will watch execution on infrastructure build-out and technology rollout closely.
This article first appeared on GuruFocus.
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