Archer Aviation Shares Plunge 2.72% on 484th Ranked 0.19B Volume Amid eVTOL Sector Woes and Legal Setbacks

On August 29, 2025, Archer Aviation (ACHR) closed with a 2.72% decline, trading on a volume of $0.19 billion, ranking 484th in market activity. The stock has faced recent volatility amid mixed signals from the eVTOL sector and internal developments.

Archer’s shares have been pressured by waning enthusiasm for electric vertical takeoff and landing (eVTOL) technology, as highlighted by industry-wide declines. A lawsuit-related setback and insider sales further weighed on sentiment. However, the company remains active in its commercialization efforts, including test flights and partnerships to expand its air taxi network globally.

Recent operational updates, such as a 55-mile test flight of its Midnight aircraft, underscore progress in its development timeline. Despite these milestones, the stock has underperformed over the past month, reflecting broader market skepticism about the sector’s scalability and regulatory hurdles. Analysts remain divided, with some emphasizing long-term growth potential while others caution overvaluation given the company’s lack of revenue and ongoing losses.

The valuation of ACHR, trading at a 3.5x price-to-book ratio above the industry average, reflects investor optimism about future earnings potential. However, this premium is not supported by current financials, highlighting risks tied to execution and market adoption. A discounted cash flow analysis suggests undervaluation if growth expectations materialize, though uncertainties persist.

Backtesting results indicate a fair value of $9.2 per share, aligning with the current price range. This suggests the market has partially priced in expected progress, though sustained momentum will depend on regulatory approvals, production scalability, and competitive positioning in the eVTOL space.