Archer Aviation (ACHR) shares dropped nearly 14% over the last five trading days, although the stock slightly recovered on Friday, rising 2% to stand at $11.21. The initial decline followed a Delaware judge’s decision to allow parts of a shareholder lawsuit to proceed, raising concerns about the company’s 2021 business combination with Atlas Crest Investment Corp. While Archer Aviation said it does not expect a material impact from the case, the legal overhang comes at a delicate time.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
ACHR’s Tough Week on Multiple Fronts
One of the company’s key backers, Stellantis (STLA), also announced it would exit its hydrogen fuel cell development program. Although this is unrelated to electric aircraft, the announcement stirred speculation about Stellantis’ future level of involvement. Stellantis has been an investor and manufacturing partner in Archer, and any reduction in support could slow momentum.
Beyond the headlines, investors are also monitoring the operational risks associated with Archer Aviation’s long-term plan. The company aims to begin commercial eVTOL flights in 2025; however, this timeline is contingent upon several external factors. FAA certification is still in progress, and while the company remains confident, the process is complex. Other players in the space, including Joby Aviation (JOBY) and Lilium, have already adjusted their timelines due to regulatory delays.
There are also infrastructure and workforce hurdles. Vertiport construction is in early stages across the U.S., and pilot training requirements remain unclear. Even if aircraft are certified, scaling operations will require more investment in facilities, training, and support systems. Battery technology, range limits, and charging infrastructure add further pressure.
Q2 Earnings Will Be Crucial for Investors’ Sentiment
According to Spark, TipRanks’ AI analyst, Archer Aviation is rated Neutral, along with a score of 49. The model highlights a lack of revenue, negative earnings, and high capital needs.
In other news, Archer Aviation announced it will report its Q2 results after market close on August 11. Investors can tune in via live webcast and submit questions through Say Technologies. With the stock under pressure and major milestones still ahead, the upcoming earnings update is likely to shape investor sentiment for the rest of 2025.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s decline, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.75. This implies a 4.82% upside from the current price.
