Grizzly Research Short Sells Archer Aviation, Calling it the 'Nikola of the Skies'

Grizzly Research is shorting Archer Aviation, calling it the "Nikola of the skies." The firm believes Archer has built a strong reputation through misleading projections and press releases, similar to Nikola. Grizzly also argues that Archer's Midnight aircraft is fundamentally flawed and likely uncertifiable, while competitor Joby Aviation is better positioned in the eVTOL space.

Grizzly Research has taken a short position in Archer Aviation (ACHR), accusing the electric air-taxi maker of overstating its technological progress and relying on false PR to support its valuation. The research firm, in a report released on Wednesday, likened Archer to Nikola, stating that the company has built a reputation through misleading projections and PR [1].

Grizzly Research collaborated with aerospace engineers to evaluate Archer’s flagship aircraft, the Midnight. The report concluded that the design is “fundamentally flawed and likely uncertifiable” by regulators. In contrast, Grizzly highlighted Joby Aviation (JOBY) as making “tangible and impressive” progress in certification, infrastructure, and commercialization [1].

Archer Aviation has seen its stock surge by 160% in the past year, reaching a market cap of over $6 billion. The company’s eVTOL aircraft, the Midnight, is making progress towards FAA certification and has secured $6 billion in orders. However, the eVTOL market is still in its early stages, and Archer faces stiff competition from Joby Aviation, which has a market cap of $14 billion [2].

Despite the challenges and competition, Archer Aviation's stock has seen significant growth due to its innovative technology and strategic partnerships. The company's ability to navigate regulatory challenges and secure early revenue through the UAE Launch Edition program has provided investors with a dual pathway to evaluate risk and reward. The eVTOL market is expected to grow to $1.5 trillion, presenting a substantial opportunity for Archer Aviation and other players in the industry [2].

However, investors must remain cautious. The company's recent net loss of $206 million in Q2 2025 underscores the challenges of commercializing eVTOL technology. Nevertheless, Archer Aviation's progress and strategic partnerships position it well to capture a significant share of the growing eVTOL market [2].

References:
[1] https://stocktwits.com/news-articles/markets/equity/grizzly-research-shorts-archer-aviation-calls-it-the-nikola-of-the-skies/chsU50qRdlP
[2] https://www.ainvest.com/news/archer-aviation-stock-late-evtol-party-2508/