‘Archer Aviation Is Deceiving Investors,’ Claims Short Seller Culper Research

Shares of Archer Aviation (ACHR) are down at the time of writing after short seller Culper Research released a harsh report accusing the company of misleading investors about how far along its Midnight electric air taxi really is. The report claims that Archer hasn’t been honest about the progress and testing of the aircraft. Indeed, it says that internal messages and observations don’t match what the company has said publicly about building and testing Midnight.

To begin with, Culper pointed out several issues, such as problems with the timing of ground tests, the actual condition of the aircraft, and whether a key “transition flight” met FAA airworthiness rules. The report also criticized Archer for spending money on publicity, like a paid spot on The Tonight Show with Jimmy Fallon and a sponsorship for the 2028 Olympics, instead of focusing on real progress. In fact, it pointed out that Archer has made little progress toward getting FAA approval, with certification moving only from 12% to 15% in two quarters.

In addition, the report brought up worries about design changes that hint at stability problems for its aircraft, which have not been clearly explained to investors. It also questioned whether Archer can follow through on plans to deliver aircraft to the UAE or show off Midnight at the 2025 World Expo in Japan. Interestingly, though, the stock’s decline has not been that bad so far, which shows that investors are only a little worried about whether Archer can actually deliver what it has promised. Nevertheless, all eyes are now on how the company will respond to these serious claims.

Is ACHR a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ACHR price target of $12.83 per share implies 3.5% downside risk.

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