Archer Aviation Stock Plunges on Disappointment Over Tesla Partnership Rumors
ByAinvest
Thursday, Oct 9, 2025 7:21 pm ET1min read
ACHR--
The optimism was short-lived, however, as Tesla's announcement on Friday focused solely on electric vehicles (EVs) and did not include any mention of an eVTOL partnership. This news led to a sharp decline in Archer Aviation's stock price, which closed at $11.57 on Friday, only to drop to $10.88 on Monday [1].
Archer Aviation, which is still in the process of seeking regulatory approvals for its commercial eVTOL aircraft, has not yet generated any revenue. The company's stock has been particularly volatile, reflecting the uncertainty surrounding its regulatory path and the potential market for eVTOLs [2].
Despite the recent setback, Archer Aviation continues to receive support from analysts. The company has seen a total of 4 buy ratings issued by Wall Street firms in the past several months, with no sell ratings [2]. Analysts have also set price targets ranging from $10.00 to $18.00, with a median target of $13.00 [2].
Institutional investors have also shown interest in Archer Aviation, with 297 institutional investors adding shares to their portfolios and 129 decreasing their positions in the most recent quarter [2]. Notable moves include Infinium Asset Management, LLC removing 72.9 million shares from their portfolio and D. E. Shaw & Co., Inc. adding 16.6 million shares to theirs [2].
The recent developments highlight the challenges faced by Archer Aviation as it navigates the complex regulatory landscape and market uncertainties in the eVTOL industry. Despite the setback, the company's long-term prospects remain promising, as the eVTOL market is expected to grow significantly in the coming years.
TSLA--
Archer Aviation stock is down 6.5% after investors were disappointed that speculation about Tesla entering the eVTOL industry didn't pan out. The company's stock spiked yesterday on hopes of a partnership with Tesla but fell after Tesla's announcement was focused solely on EVs. Archer doesn't generate any revenue yet and its stock has been volatile as it works towards regulatory approvals for its commercial eVTOL.
Archer Aviation Inc. (NYSE: ACHR) stock experienced a significant downturn, falling 6.5% on Monday, September 12, 2025, following a disappointing turn of events regarding speculation about a potential partnership with Tesla Inc. (NASDAQ: TSLA) in the eVTOL (electric vertical takeoff and landing) industry. The stock had surged on Friday, September 10, 2025, as investors were optimistic about the possibility of a collaboration between the two companies [1].The optimism was short-lived, however, as Tesla's announcement on Friday focused solely on electric vehicles (EVs) and did not include any mention of an eVTOL partnership. This news led to a sharp decline in Archer Aviation's stock price, which closed at $11.57 on Friday, only to drop to $10.88 on Monday [1].
Archer Aviation, which is still in the process of seeking regulatory approvals for its commercial eVTOL aircraft, has not yet generated any revenue. The company's stock has been particularly volatile, reflecting the uncertainty surrounding its regulatory path and the potential market for eVTOLs [2].
Despite the recent setback, Archer Aviation continues to receive support from analysts. The company has seen a total of 4 buy ratings issued by Wall Street firms in the past several months, with no sell ratings [2]. Analysts have also set price targets ranging from $10.00 to $18.00, with a median target of $13.00 [2].
Institutional investors have also shown interest in Archer Aviation, with 297 institutional investors adding shares to their portfolios and 129 decreasing their positions in the most recent quarter [2]. Notable moves include Infinium Asset Management, LLC removing 72.9 million shares from their portfolio and D. E. Shaw & Co., Inc. adding 16.6 million shares to theirs [2].
The recent developments highlight the challenges faced by Archer Aviation as it navigates the complex regulatory landscape and market uncertainties in the eVTOL industry. Despite the setback, the company's long-term prospects remain promising, as the eVTOL market is expected to grow significantly in the coming years.
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