The Archer Aviation is among the disadvantage of the EVTOL sector leaders.
The company plans to deliver its first midnight vehicle this summer.
After a recent further offer, the business business is well capitalized and nearly $ 2 billion in the balance sheet.
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Archer Aviation (NYSE: ACHR) is one of the few companies starting one of the most disruptive innovations.
The Archaher is a manufacturer of electric vertical ups and landing (EVTOL) vehicle development phase. These vehicles are similar to electric helicopters, but bring some advantages. They are much quieter than helicopters. They have multiple engines, not one engine to eliminate a one -time problem of helicopters, and as EV avoids helicopter discharge.
Investors are clearly enjoyed by Archar Aviation, as the stock has jumped 155%over the past year. After the election, it has grown and has been increasing since then, although the company has no revenue. Now its market top limit is $ 6.2 billion.
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The Archer Aviation Premier vehicle is The Midnight, which costs $ 5 million and secured customers like United AirlinesAbu Dhabi Aviation and Ethiopian airlines.
The company describes Midnight as a patented distributed distributed electric drive platform. It can carry four passengers and a pilot.
Archer creates two chapters: commercial and business.
Her commercial department, which he calls the Archer Direct, is built around the city’s air taxi network. Archer imagines that customers, such as United Airlines, use their vehicles for ferry passengers from the city center to local airports, saving time that would usually be needed when driving a car. The Archer also plans to provide its direct -useful Ruperi Stock Service, which will carry passengers around the subway districts.
Like drones, its vehicles are also considered applications in the military and defense industry. The company cooperates with projects with the Air Force since 2021, and it is also accompanied by defense startup Anduril to create hybrid propulsion, vertical upswing and landing aircraft.
It seems that commercialization will soon appear when the company said in its first quarter report that it was soon preparing for its first aircraft in the UAE. She also announced Ai’s partnership PalantirA high -flying defense technology company working with AI new aviation technology. Finally, she introduced her plans for her Air Taxi network in New York with United.
Without revenue, we cannot value the Archaer according to the usual assessment metric. However, we can examine his balance and cash burning.
The Archer has completed the quarter with $ 1.03 billion in cash and only $ 203.3 million in total liabilities, showing that the company is well capitalized, and at the moment with the $ 6 billion market in the market, it should be able to raise more cash selling equity without significant shareholders. June The company raised an additional $ 850 million, giving nearly $ 2 billion liquidity.
When it comes to cash burns, its negative free cash flow was $ 104.6 million in the first quarter. USD, and in 2024. – $ 450 million. Cash flow losses showing that it will burn nearly $ 2 billion in about four years.
Currently, high expectations are already baked in an evaluation of the Archer Aviation, and the Evtol industry is more widely until the Archer has even sold its sale.
It is possible that new technology may interfere, but before investors continue to cost inventory, they should question why helicopters have not yet acquired things like the Urban Air Taxi network, which the Archer expects to create.
Services such as Blade already exist, which are exactly what they are, and they were not used, probably because most passengers are not economically effective in traveling a helicopter. For example, Blade takes $ 195 for the basic price for the location for a drive from Manhattan to JFK Airport.
The Archer’s defense programs seem more promising, but the address of its technology addresses is still unclear and unproven.
With any new technology, there is some possibility that it can be a breakthrough and a big investor winner, but it is also worth remembering that the market is already sparkling, and the overall moods of Bullish have already encouraged stocks in developing sectors such as Evtol and Quantum Computing.
The Archer Aviation can be a big winner, but with a $ 6 billion market in the top limit, and the economy and air taxi seem unfavorable, the likelihood that it is a much greater disappointment than it will help you live.
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Jeremy Bowman has no position in any of the above shares. The Motley fool is a position and recommends Palantir Technologies. The Motley fool has a disclosure policy.
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