Archer Aviation (US:ACHR) The Motley Foolยท2024-12-02 14:00Core Viewpoint - Millennium Management has significantly reduced its stake in Rivian Automotive by 95% and initiated a position in Archer Aviation, indicating a strategic shift in investment focus within the electric vehicle sector [1][2]. Group 1: Rivian Automotive - Millennium sold approximately 4.6 million shares of Rivian during the third quarter, reflecting a major divestment from the company [2]. - Rivian's production and delivery trends have been inconsistent, with management's efforts appearing to be short-term fixes rather than sustainable solutions [4]. - For the quarter ended September 30, Rivian reported a loss of $39,130 per vehicle delivered, marking the lowest gross profit per vehicle for 2024 [6]. - Potential changes in EV tax credits under the Inflation Reduction Act could further hinder Rivian's ability to drive demand, especially as the company struggles to compete with Tesla [7][8]. Group 2: Archer Aviation - Millennium acquired 3,247,428 shares of Archer Aviation, a company focused on developing electric air taxis [9]. - Archer has a purchase order book exceeding $6 billion, indicating strong demand from major clients like United Airlines and the U.S. military [10]. - Despite a 54% increase in share price in 2024 and a market capitalization of $4.1 billion, skepticism remains regarding Archer's prospects until it begins commercial operations [11]. - The investment in Archer represents a minor position for Millennium, comprising less than 0.1% of its entire portfolio, suggesting a cautious approach to this speculative investment [12].