Investors expecting Archer Aviation’s (NYSE: ACHR) recent cash infusion to lift its price to new highs should think again. The injection is good news and lifts the liquidity position, providing about two years of operational visibility, but does nothing to improve the revenue and earnings outlook. The money shores up the balance sheet and is expected to accelerate the project, but revenue and earnings rely on FAA certification. The certification process is progressing, in the final stages, but slow. Final approval is expected before the year’s end, but there is no guarantee.
[content-module:CompanyOverview|NYSE:ACHR]Revenue and earnings also rely on production capability, which is improving but not yet ready. The company got the CO for its Covington, GA production facility and hopes to ramp production to 650 aircraft by 2030 but has yet to produce one. As it is, production is expected to begin early this year but faces challenges, including the final assembly of production lines and, of course, regulatory approval.
