Archer Aviation(ACHR) shares dropped more than 5% on Tuesday after the eVTOL company reported a major step in its flight test program. The stock ended the day at $9.29, down 5.69%, with trading activity reaching $270 million, which ranked 382nd among all stocks for the session. Yesterday’s drop reflected the ACHR stock performance in the last three months, having shed more than 17%. With that in mind, yesterday’s drop came right after news of the company’s longest piloted flight of its Midnight electric aircraft.
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The test took place in Salinas, California, and showed the aircraft flying 55 miles in 31 minutes at speeds over 126 miles per hour. Earlier test runs had reached close to 150 miles per hour, which pointed to steady gains in speed and control. United Airlines (UAL) Chief Financial Officer Mike Leskinen watched the event. United is a key partner and early backer of Archer, and it has already agreed to add Midnight to its fleet once regulators approve it.
Mixed Signals Weigh on Shares Despite Flight Progress
Despite Archer showing real progress in this latest milestone, the stock did not reflect the same lift. Archer shares slid despite this progress, which signals that investors remain cautious. The path to full approval from regulators is still ahead, and that process will take time. Still, the test flight gave proof that Archer is moving toward its goal of starting passenger service in 2025.
The results also put Archer in line with other firms in the electric air taxi space. Joby Aviation (JOBY), its main rival in the sector, also held flight trials, and its shares fell more than 7% on the same day. The drop across both names showed that even strong technical milestones can get weighed down by market mood and trading pressure.
Looking at technical signals, the picture also leaned mixed. TipRanks data shows the overall consensus as “Sell,” with more bearish signals than bullish ones. The Moving Average Consensus also sat in sell territory. However, the Technical Analysis Consensus came out neutral, pointing to some balance between buyers and sellers. Archer’s 20-day and 50-day exponential moving averages stayed above its latest close, which also added pressure.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on eight recent ratings, Archer Aviation boasts a “Strong Buy” consensus with an average 12-month price target of $12.06. This implies a 29.82% upside from the current price.
In summary, Archer Aviation is showing real steps toward making electric air taxis a daily service. However, the stock is still highly volatile, and it reflects both the excitement and the risk tied to a new form of travel. Investors will likely keep watching not just the next flights, but also how the approval path unfolds in the months to come.