Archer Aviation's eVTOL aircraft sparks Tesla partnership speculation, but should you buy ACHR stock?

Archer Aviation shares rose 20% on speculation of a potential partnership with Tesla. The company has achieved technical and operational milestones, including successful test flights and FAA certifications. However, caution is warranted due to regulatory challenges, infrastructure development requirements, and fierce competition in the urban air mobility market. Wall Street firms recommend caution and a potential downside of 10% from current levels.

Archer Aviation (ACHR) shares rose by approximately 20% on Friday, September 12, 2025, amidst speculation of a potential partnership with Tesla. The surge in stock price was driven by a promotional video featuring Archer's Midnight eVTOL aircraft alongside Tesla's Optimus robot, which sparked rumors of a collaboration between the two companies Archer Aviation Stock (ACHR) Opinions on Tesla Partnership Speculation^[1]. This speculation has kept investors and market analysts engaged, with many eagerly awaiting a rumored announcement that could significantly impact Archer's stock trajectory.

The video posted by Archer Aviation showcased its Midnight eVTOL aircraft alongside Tesla products, fueling the partnership rumors. Tesla subsequently released a cryptic teaser video, hinting at an October 7 announcement, further fueling speculation. Retail traders on platforms like Stocktwits pushed sentiment into bullish territory, with high volumes of messages debating the implications of a potential collaboration Archer Aviation (ACHR) Stock Jumps Amid Tesla Partnership Rumours^[2].

Beyond the Tesla buzz, Archer Aviation has made concrete progress in the urban air mobility (UAM) sector. The company joined a federal pilot program designed to fast-track air taxi operations in the United States. United Airlines is partnering with Archer for trial flights, marking a significant step toward commercial service launch. Archer's financial data shows a cash balance of $1.7 billion, with a current ratio of 22.3, despite posting a net loss of $206 million in the latest period Archer Aviation (ACHR) Stock Jumps Amid Tesla Partnership Rumours^[2].

Archer demonstrated its Midnight aircraft at the California International Airshow over the weekend, where it showcased a conventional takeoff rather than vertical launch. The company completed high-altitude testing of the Midnight aircraft, reaching 7,000 ft and later 10,000 ft in recent flights. These achievements highlight Archer's technological advancements in the eVTOL market Flying into the Future: Why Archer Aviation’s High‑Altitude Breakthroughs and Global Partnerships Are Electrifying the Air‑Taxi Market (Oct 2025)^[3].

Despite the recent surge in stock price, analysts caution that Archer's stock may face a downside of 10% from current levels. The company remains pre-revenue and faces ongoing profitability challenges, with operating losses of more than $100 million per quarter. Archer's heavy research and development spending and the need for additional funding or dilution are areas of concern for investors Flying into the Future: Why Archer Aviation’s High‑Altitude Breakthroughs and Global Partnerships Are Electrifying the Air‑Taxi Market (Oct 2025)^[3].

The urban air mobility market is highly competitive, with several companies vying for a share of the market. Archer's success will depend on its ability to navigate regulatory challenges, develop necessary infrastructure, and maintain its technological edge. The potential partnership with Tesla could provide a significant boost to Archer's credibility and market position, but investors should remain cautious and monitor the developments closely.