Why did ACHR pre-market plummet?

The ACHR ETF, which tracks Archer Aviation, did not experience a pre-market drop on July 22, 2025. However, Archer Aviation's stock faced a significant decline on July 21, 2025, dropping by 10.9%. This decline can be attributed to several factors:

1. **Legal Challenges**: A judge ruled that a shareholder lawsuit related to Archer's SPAC merger will proceed. This legal challenge adds uncertainty to the company's operations and financials, leading to a sell-off in its stock.
2. **Financial Performance Concerns**: Stellantis, a major backer of Archer, reported preliminary numbers showing a $2.68 billion loss for the first half of the year. This financial performance raises concerns about the company's financial health and future prospects, contributing to the stock's decline.
3. **Executive Selling**: On July 1, Archer Aviation saw its share prices decrease by 8.94% after an executive sold $1 million worth of shares. This insider selling can be a signal to investors about the confidence that insiders have in the company's future performance.
4. **Market Conditions**: The stock's decline may also be a result of market conditions and investor sentiment. Recent fluctuations in the broader market and investor concerns over valuations of high-flying stocks could have contributed to the sell-off.

In summary, Archer Aviation's stock decline on July 21, 2025, was likely a result of a combination of legal challenges, financial performance concerns, insider selling, and market conditions.