Archer Aviation Shares Fall 1.84% as Saudi eVTOL Partnership Can't Lift 230th Trading Volume Rank

Market Snapshot

Archer Aviation (ACHR) closed 1.84% lower on November 19, 2025, following a trading session in which its shares ranked 230th in daily trading volume across U.S. markets, with $470 million in turnover. The decline comes despite the company’s recent announcement of a strategic partnership with Saudi Arabia’s Public Investment Fund (PIF)-affiliated entities, The Helicopter Company (THC) and Red Sea Global (RSG), to develop and test electric vertical takeoff and landing (eVTOL) air taxi operations in the Kingdom. The stock’s performance contrasts with early morning gains of 0.7% reported by some market observers, suggesting mixed investor sentiment ahead of the partnership’s full implications.

Key Drivers

Archer Aviation’s partnership with THC and RSG represents a pivotal expansion into Saudi Arabia’s emerging urban air mobility ecosystem. The collaboration, formalized at the Dubai Airshow, establishes a “sandbox framework” to test the Midnight eVTOL aircraft under real-world conditions, focusing on operational feasibility, regulatory alignment, and passenger acceptance. This initiative aligns with Saudi Arabia’s Vision 2030 goals to advance sustainable transportation and regenerative tourism. By leveraging RSG’s controlled airspace and infrastructure, the partnership aims to accelerate eVTOL integration into the Kingdom’s mobility network, positioning Archer as a key player in the global eVTOL market.

The deal’s strategic significance is underscored by the involvement of PIF, Saudi Arabia’s sovereign wealth fund, which has positioned THC as a leader in the country’s general aviation sector. THC’s CEO, Captain Arnaud Martinez, emphasized the partnership’s role in fostering confidence in emerging technologies and advancing Saudi Arabia’s position in next-generation aviation. Meanwhile, Red Sea Global’s Group CEO, John Pagano, highlighted the alignment with the company’s vision to redefine sustainable travel, particularly in the context of Saudi Arabia’s regenerative tourism projects, such as The Red Sea and AMAALA. These statements signal a shared commitment to leveraging eVTOL technology to enhance connectivity and reduce environmental impact.

The sandbox testing phase, led by Red Sea Global, will evaluate the Midnight eVTOL’s performance in controlled environments, including assessments of passenger experience and ecosystem readiness. This structured approach allows for iterative improvements before potential large-scale deployment. Archer’s CEO, Adam Goldstein, noted that such partnerships are central to the company’s global strategy, particularly in markets with supportive regulatory frameworks and ambitious infrastructure plans. The collaboration also complements Archer’s existing international agreements in South Korea and Japan, reinforcing its position as a leader in eVTOL development.

Market reactions to the partnership have been mixed, with the 1.84% decline in ACHR shares potentially reflecting investor skepticism about the commercial viability of eVTOL technology in the short term. However, the deal’s long-term implications—such as potential large-scale deployments in Saudi Arabia and the broader Middle East—could catalyze renewed interest. The involvement of PIF and RSG, both with substantial resources and strategic alignment with Vision 2030, adds credibility to the partnership’s success. Analysts may view the sandbox program as a critical milestone for Archer, with results expected to influence broader adoption of eVTOL services in the region.

The partnership also underscores the growing global interest in eVTOL technology as a solution for urban congestion and carbon emissions. By targeting Saudi Arabia’s tourism and infrastructure projects, Archer is addressing a market with high growth potential, particularly as the Kingdom seeks to diversify its economy away from oil. The collaboration’s focus on regenerative tourism further differentiates it from conventional aviation projects, aligning with global trends toward sustainability. If successful, the initiative could serve as a blueprint for eVTOL integration in other regions with similar ambitions.

In summary, Archer Aviation’s partnership with Saudi entities represents a strategic bet on the future of urban air mobility, leveraging PIF’s resources and the Kingdom’s regulatory environment to advance eVTOL adoption. While the stock’s recent decline suggests cautious optimism, the long-term potential of the partnership—backed by key stakeholders and aligned with macroeconomic trends—positions Archer to benefit from the growing demand for sustainable, next-generation transportation solutions.