Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Over the last several months, we have made tremendous progress across our aircraft program in its entirety from flight tests to manufacturing and, of course, FAA certification |
| I'm very also excited about the capital-efficient approach that has helped us maintain a strong liquidity position as we go into 2024 |
| I'm very proud of the strategy that we've taken since day one with FAA-tenured suppliers, which has enabled us to leapfrog others in the sector and the entire, and enter the final stages of the FAA certification process |
| So what you see in us moving forward with these first three aircraft is that we're confident in a large extent of the designs, and we're able to move forward and begin doing that For Credit work that we highlight in this chart |
| So the - really what we're trying to showcase is that we're confident in the design, we're confident in the certification progress, we're confident in the manufacturing build, and now we're starting to build up the demand side to be able to deliver against all of that |
| So we think that positions us really well to make our way through this last phase of the certification process efficiently |
| And for that reason, we're able to make a lot of progress and have very clear line of sight to what we need to do |
| Our commercial team is seeing a high level of demand for eVTOL aircraft globally, and potential customers are very excited about what Midnight can deliver |
| There's still a lot of work to do, obviously, to get the aircraft through certification, but the relationship with FAA is super positive and we're making a lot of progress |
| Standing here today, I can say I'm really confident in the design maturity of the aircraft and our path forward |
| In the Emirates, we are seeing promising markets for Midnight in both Abu Dhabi and Dubai as well as an air corridor between the two cities |
| We're really happy with that |
| I believe that we are the only eVTOL company in the world to announce a relationship like this with a top automotive manufacturer, and this gives us significant cash flow advantages compared to competitors who are investing hundreds of millions of dollars in manufacturing off their own balance sheet |
| This allowed us to opportunistically take advantage of a strong stock price to minimize dilution |
| This creates a tremendous opportunity to early on generate significant revenues and cash proceeds for the business |
| Over the last year, we've achieved a lot of traction in building an indicative order book for the direct sale of our aircraft to our partners |
| Between this planned strategic contracting manufacturing relationship with Stellantis and their continued willingness to invest capital directly into Archer, I'm very pleased by their alignment to ensure we remain well-capitalized as we work together to commercialize the business as soon as possible |
| Bringing together all the key achievements that Adam and Tom just discussed, it is clear we have made tremendous progress across the key areas that will enable Archer to achieve commercialization, certification, scaled manufacturing and commercial partnerships |
| I'm proud of how rapidly they've been able to ramp up the flight test program and we intend to soon be able to fly as much as 10 times to 15 times per day, getting closer to our commercial mission tempo while proceeding through the critical implementation phase of FAA certification |
| I've already been quite pleased with the battery's performance to date, which has enabled us to make significant progress as we advance our program towards full windborne transition flight in the coming months |
| In addition, I want to call out one very exciting milestone that the team achieved recently and Adam mentioned earlier which is getting our Part 145 certification from the FAA, making us one of only two eVTOL companies globally to have achieved that feat |
| Further, we would expect our indicative order booked for direct aircraft sales to continue to grow in 2024 and 2025 as we are likely to be the only OEM in the market with an FAA-certified aircraft that is available for purchase and can be produced in volume |
| to meet with the new administrator, and it was actually really encouraging that AAM, Advanced Air Mobility, had a seat at the table with the administrator amongst the large OEMs that are building |
| And so by partnering with these experienced aerospace suppliers and choosing subsystems and components that have certification heritage, we basically have all of the expertise, knowledge, experience from all these past aircraft programs helping drive things forward |
| Notably, the FAA recently awarded Archer our Part 145 certification, and we're grateful to be one of only two companies globally to reach this milestone, which is a major vote of confidence from the FAA towards Archer's goal of entering into service next year |
| Given their position as a long-term strategic partner of the company, we expect them to do this on attractive terms and through attractive structures |
| This hybrid approach allows us to take advantage of direct sales opportunities early on in our business to generate significant revenues while the aerial ride-sharing piece of the business builds out |
| Instead, our teams have continued to execute at a relentless, focused velocity alongside the best and most experienced suppliers in the aerospace industry, with a minimized risk of incurring a costly redesign |
| When I founded Archer, I knew from watching the EV industry that developing the capability to manufacture our aircraft at high volumes was perhaps the number one enabler of our future success alongside the design and certification of the aircraft |
| We will continue to share more details on the strategy in the coming quarters, but this puts us in an unprecedented position to commercialize this business very efficiently |
| Statement |
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| It is even more clear to us now that had we gone down the fully vertically integrated pathway, we would be facing an order of magnitude higher R&D budget, certification risk and uncertainty about our ability to scale production and launch meaningful commercial operations |
| And so you should expect to see our quarterly run rate come down in the second half |
| If we had vertically integrated this scope on the other hand, we would have been forced to install large expensive autoclaves and entire robotic manufacturing lines from scratch in order to start constructing aircraft instead of leveraging existing talent and CapEx that this leading aerospace supplier has used across many certification programs |
| He wasn't wrong |
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