Archer Aviation Plunges 8.03% Amid Joby Lawsuit Trading Volume Ranks 236th in U.S. Liquidity

Market Snapshot

On November 20, 2025, Archer Aviation (ACHR) experienced a sharp decline, . , ranking it 236th among U.S.-listed equities in terms of liquidity. The significant drop followed a high-profile legal dispute with rival eVTOL firm Joby Aviation, which filed a lawsuit alleging corporate espionage. The volume, while substantial, did not fully offset the bearish sentiment triggered by the allegations, which dominated market attention and contributed to the stock’s steep intraday losses.

Key Drivers

The primary catalyst for Archer Aviation’s 8.03% decline was a lawsuit filed by Joby Aviation in California state court, accusing Archer of leveraging stolen trade secrets to undermine a strategic partnership with a real estate developer. The suit alleges that George Kivork, a former Joby employee who joined Archer in July 2025, exfiltrated confidential files—including business strategies, partnership terms, and technical data—two days before his resignation. These files allegedly enabled Archer to secure a “more lucrative deal” with the developer, which had previously partnered exclusively with Joby. The developer reportedly attempted to terminate its agreement with Joby, citing a breach of confidentiality linked to Kivork’s actions. Joby described the incident as “corporate espionage, planned and premeditated,” while Archer denied wrongdoing, calling the allegations “without merit” and emphasizing its rigorous employee onboarding protocols.

The lawsuit’s timing added urgency to the eVTOL sector’s competitive dynamics. Both companies are racing to secure Federal Aviation Administration (FAA) certification for commercial operations, with Archer and Joby having already demonstrated prototype flights in regions like the UAE and Saudi Arabia. The dispute highlights the high-stakes nature of intellectual property in the emerging urban air mobility market, where proprietary technology and strategic partnerships are critical differentiators. Joby’s legal action not only threatens to delay Archer’s commercialization timeline but also risks reputational damage, as the eVTOL industry remains sensitive to claims of unethical practices.

Archer’s response to the allegations further exacerbated market concerns. The company’s chief legal officer, , dismissed the lawsuit as a “baseless distraction,” arguing that Joby’s focus on litigation reflects its own operational shortcomings. However, this rebuttal failed to assuage investors, as the case raises questions about Archer’s governance and risk management. The firm’s recent partnership with Saudi Arabia’s Public Investment Fund, announced in late October 2025, was overshadowed by the lawsuit, which introduced regulatory and legal uncertainties. Meanwhile, Joby’s recent expansion into Saudi Arabia and Central Asia, including a $250 million supply deal with Kazakhstan’s Alatau Advance Air Group, underscored its aggressive market positioning, further intensifying competitive pressures on Archer.

Broader industry trends also played a role in the stock’s performance. The eVTOL sector, , faces challenges in scaling operations while navigating complex regulatory frameworks. The lawsuit underscores the vulnerability of companies operating in this space to intellectual property disputes, which could deter investor confidence. Additionally, , though analysts attributed the move to personal financial planning rather than strategic concerns.

In summary, the 8.03% drop in Archer Aviation’s stock price reflects a confluence of legal, reputational, and competitive risks. The lawsuit with Joby not only disrupts immediate business prospects but also casts a shadow over the broader eVTOL industry’s race to commercialize air taxi services. As the case progresses, outcomes will likely influence investor perceptions of both firms, with potential implications for market share, regulatory scrutiny, and long-term valuation.