Archer Aviation (ACHR) Stock: Flying High After Trump’s Air Taxi Push

TLDR

Archer Aviation stock jumped 11.7% after President Trump signed an executive order to accelerate the U.S. electric air taxi industry development The order requires the Transportation Secretary to create an eVTOL pilot program with at least one private sector partner Archer’s Midnight aircraft has completed hundreds of test flights and the company is preparing operations in New York and Los Angeles Short-seller Culper Research published a report in May claiming Archer misled investors about its progress, causing an 18% stock decline The company has $1 billion in cash and partnerships with Stellantis for manufacturing, with plans to produce 650 aircraft annually

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Archer Aviation shares soared 11.7% Monday following President Trump’s executive order accelerating the development of America’s electric air taxi industry. The order requires the Transportation Secretary to establish an eVTOL pilot program with private sector participation.

The executive order, signed late Friday, specifically calls for at least one “private sector partner with demonstrated experience in eVTOL aircraft development, manufacturing, and operations.” Archer Aviation fits this description perfectly.

The company’s Midnight aircraft has completed several hundred successful test flights. The electric vertical takeoff and landing vehicle can fly like an airplane but takes off and lands like a helicopter.

Archer Aviation Inc. (ACHR)

Archer is already preparing commercial operations in New York and Los Angeles. The company is also developing a version of its Midnight aircraft specifically for the U.S. Air Force.

Transportation Secretary Sean Duffy could use Archer’s existing work to meet President Trump’s accelerated timeline goals. The order creates regulatory momentum for the entire air taxi industry.

Short-Seller Report Creates Turbulence

The stock surge comes after a challenging period for Archer Aviation. In May, short-seller Culper Research published a report claiming the company “systematically misled” investors about its progress.

The report questioned Archer’s communications about its eVTOL program development. Culper Research cited employee emails, photos, and public statements that allegedly contradicted the company’s claims.

Archer’s stock dropped 18% from May 19 to June 5 following the report’s publication. Management dismissed the claims as “baseless” and questioned Culper’s credibility.

Short-sellers profit when stock prices fall, which creates incentives to present situations negatively. Many speculative tech companies face similar scrutiny about their timeline projections.

Tesla CEO Elon Musk has frequently made projections about self-driving technology that haven’t materialized as predicted. Market expectations often account for such delays in speculative stocks.

Financial Position and Manufacturing Plans

Archer Aviation reported $144 million in operating losses during the first quarter. This compared to $142 million in losses during the same period last year.

The losses stemmed primarily from research and development spending. The company is investing heavily to bring the Midnight aircraft closer to commercialization.

Archer maintains approximately $1 billion in cash and equivalents on its balance sheet. At the current burn rate, this provides funding for about seven more quarters.

The company partnered with automaker Stellantis to build a manufacturing facility in Covington, Georgia. The facility will eventually produce up to 650 aircraft annually.

Stellantis brings manufacturing expertise and capital to the partnership. Archer expects to produce two Midnight aircraft per month by the end of 2025.

Early customers include Ethiopian Airlines and Abu Dhabi Aviation. Abu Dhabi Aviation plans to take delivery of Midnight aircraft later this year.

The global air taxi market could grow at over 20% annually through 2032, according to Global Market Insights. North America is expected to lead this growth.

While Archer awaits FAA approval in the U.S., international markets appear to be moving faster. The company’s revenue could accelerate dramatically as it secures more clients and ramps production over the next three years.

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