SCHEDULE: Stellantis Boosts Archer Aviation Stake to 10.4%

Stellantis N.V. has increased its beneficial ownership in Archer Aviation Inc. to 10.4% of Class A Common Stock, reflecting further commitment to the eVTOL company.

Summary

• Stellantis N.V. now beneficially owns 78,235,067 shares of Archer Aviation Inc. Class A Common Stock, representing 10.4% of the class.
• This ownership includes shares from vested warrants and other agreements, with Stellantis Europe S.P.A. holding shared voting and dispositive power over 8,577,024 shares (1.1% of the class).
• The percentage calculations are based on 651,341,543 shares outstanding as of October 31, 2025, plus additional shares issued or issuable through various agreements.
• Key events include the vesting of Tranche 2 (January 3, 2025) and Tranche 3 (January 3, 2026) of the Stellantis Warrant, each for 5,000,000 shares at an exercise price of $0.01 per share.
• Stellantis acquired the FCA US Warrant from FCA US on May 27, 2025, leading to FCA US and its affiliates ceasing beneficial ownership.

Sentiment

Score: 7

Explanation: The filing indicates a strengthening of the strategic partnership between Stellantis and Archer Aviation through increased equity ownership and potential governance influence, which is generally positive for Archer. The events described are largely expected outcomes of prior agreements.

Positives

• Increased strategic alignment and commitment from Stellantis, a major automotive manufacturer, to Archer Aviation.
• Stellantis's continued investment signals confidence in Archer's technology and market potential.
• The vesting of warrants at a low exercise price ($0.01 per share) provides Stellantis with a significant equity position at a favorable cost basis.

Future Outlook

Stellantis maintains the right to nominate one Class II director to Archer's Board from 2026 through 2029, provided its beneficial ownership remains at least 12.5% of Archer's outstanding Class A Common Stock. This indicates a continued strategic interest and potential influence over Archer's future direction.

Industry Context

Stellantis's increased stake reinforces the growing trend of traditional automotive manufacturers investing in and partnering with advanced air mobility (AAM) companies. This strategic partnership with Archer Aviation positions Stellantis to potentially play a significant role in the future of urban air mobility and electric vertical takeoff and landing (eVTOL) aircraft development and production, leveraging its manufacturing expertise.

Comparison to Industry Standards

• The strategic investment by a major automotive OEM like Stellantis in an eVTOL developer such as Archer Aviation is consistent with broader industry trends where established players seek to gain a foothold in emerging transportation technologies. For example, Toyota has invested in Joby Aviation, and Hyundai has its own Supernal division.
• Stellantis's 10.4% stake, with potential for board representation, suggests a deeper strategic partnership beyond a mere financial investment, aiming for collaborative development or manufacturing, similar to how some automotive companies partner with battery technology firms.

Corporate Governance

Related Party Transactions

• Stellantis purchased the FCA US Warrant from FCA US, which is an internal transaction within the Stellantis group, indicating a consolidation of ownership within the parent entity.

Stakeholder Impact

• Shareholders (Archer Aviation): Increased confidence from a major strategic partner could be seen positively, potentially stabilizing the stock and signaling long-term viability. The potential for a Stellantis-nominated director could influence future strategic decisions.
• Employees (Archer Aviation): A stronger partnership with Stellantis could provide greater resources, expertise, and stability for Archer's development and manufacturing efforts.
• Customers/Suppliers (Archer Aviation): Enhanced backing from Stellantis could strengthen Archer's position in the market, potentially accelerating product development and market entry.

Next Steps

• Stellantis may exercise the vested Tranche 2 and Tranche 3 warrants to acquire additional Class A Common Stock.
• Stellantis may nominate one individual for election to Archer's Board as a Class II director at the 2026 annual meeting of stockholders, provided its beneficial ownership remains at least 12.5%.

Key Dates

Recommendation

The filing details the expected vesting of warrants and the consolidation of ownership by Stellantis, a key strategic partner for Archer Aviation. This reinforces Stellantis's commitment and potential future influence through board representation, which is a positive signal for Archer's long-term prospects. However, these events are largely anticipated based on prior agreements and do not introduce new, unforeseen catalysts that would warrant an immediate "buy" or "sell" recommendation. Therefore, maintaining a "hold" position is appropriate as investors await further operational and financial updates from Archer.

Keywords

Archer Aviation, Stellantis, eVTOL, Electric Vertical Takeoff and Landing, Equity Stake, Beneficial Ownership, Warrants, Automotive Partnership, Urban Air Mobility, Aviation Technology