Archer Aviation Slides as Legal and Cash Concerns Loom

Archer Aviation ( (ACHR) ) has fallen by -10.46%. Read on to learn why.

Archer Aviation’s stock slid 10.46% over the past week as investors grappled with a mix of long-term promise and near-term uncertainty in the eVTOL pioneer’s story. The pullback followed several down days, including a sharp drop after the company disclosed it had moved to dismiss a high‑profile lawsuit from rival Joby Aero, and another decline after Archer registered resale shares from a prior acquisition. While the resale filing doesn’t raise new capital or increase the share count, it reminded the market that early investors still have stock to sell, adding to jitters in an already volatile name.

At the same time, Wall Street commentary underscored the gap between Archer’s ambitious vision and the slow grind needed to make electric air taxis a reality. J.P. Morgan maintained a Neutral stance, highlighting heavy cash burn, the long, uncertain certification process, and the likelihood that meaningful cash generation won’t arrive until the mid‑2030s. Options data echoed this caution: implied volatility climbed and demand for downside protection increased, showing traders are bracing for larger price swings and potential further weakness in the near term.

Yet the recent sell-off comes against a backdrop of strategic progress and generally constructive analyst views. Archer has strengthened its infrastructure by acquiring key assets at Hawthorne Airport in Los Angeles, envisioned as a core hub for its air taxi network ahead of the 2028 Olympics, and continues to advance test flights toward full transition operations. Needham and other firms still rate the stock a Buy or Moderate Buy, with average targets well above current levels, arguing that Archer’s solid balance sheet, growing regulatory traction, and first‑mover position in urban air mobility could reward investors who can stomach volatility and wait out a long runway to commercialization.