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(Reuters) -Automaker Stellantis will make investments an extra $55 million in Archer Aviation after the air taxi maker’s flagship plane accomplished a transition flight final month, the businesses stated on Tuesday.
The most recent funding follows the automaker’s open market purchases of 8.3 million shares of Archer’s inventory in March, which made Stellantis the biggest shareholder within the electrical vertical takeoff and touchdown (eVTOL) maker, in line with LSEG knowledge.
Stellantis had additionally invested $110 million in Archer final 12 months by means of a mix of open market inventory purchases and a funding settlement between the 2 firms.
Archer’s “Midnight” eVTOL achieved a milestone after it accomplished a transition flight final month.
A transition flight happens when an plane takes off vertically like a helicopter, accelerates ahead, transitions from thrust-borne to wing-borne flight earlier than decelerating and touchdown vertically.
Shares of Archer rose 9% in early U.S. buying and selling. However the inventory is down 44.3% to date this 12 months.
(Reporting by Abhijith Ganapavaram in Bengaluru; Enhancing by Shilpi Majumdar)
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