Archer Aviation Inc. (NYSE: ACHR) shares bounced on Friday, November 21, 2025, as investors digested a flurry of conflicting headlines: a new short-seller report, fresh legal pressure from rival Joby Aviation, and a string of high-profile partnerships stretching from Saudi Arabia to Los Angeles.
ACHR ended Friday’s session around $7.2 per share, up roughly 4–5% on the day, after trading between about $6.55 and $7.30 on heavy volume of roughly 47–50 million shares, depending on the data provider. [1]
Despite today’s rebound, the stock remains sharply below its early‑November levels. Various sources peg 2025 year‑to‑date performance for ACHR as a roughly 20–30% decline, reflecting a steep slide over the past month following earnings, a $650 million equity raise, and dilution concerns. [2]
At the same time, Archer continues to attract both partners and high‑conviction investors. At the Dubai Airshow, the company unveiled a Saudi Arabian partnership, expanded a defense-powertrain deal with Anduril, and remains a sizable position for Cathie Wood’s ARK Innovation ETF, which recently added nearly 1 million ACHR shares to bring its stake above 20 million shares (about 2% of the fund). [3]
Below is a breakdown of what moved ACHR stock today and what’s now shaping the bull and bear cases.
ACHR Stock Today: Volatile Week Ends With a Relief Bounce
After a string of double‑digit daily declines earlier in November, ACHR’s move higher on Friday looks more like a technical relief rally than a clean change in trend.
- Price action: Most historical feeds show Friday’s close near $7.17–$7.20, versus Thursday’s close around $6.87, for a daily gain of roughly 4.5–4.8%. Intraday, the stock traded between about $6.55 and $7.29. [4]
- Volume: Turnover near 50 million shares is significantly above the stock’s average daily volume, underscoring how closely traders are watching the name. [5]
- Recent trend: MarketWatch and other trackers show ACHR down ~15–16% over the last five trading days and around 30% over the past month, even incorporating today’s bounce. [6]
The backdrop to today’s move is noisy: a critical short report, a trade‑secrets lawsuit, new international and defense deals, and ongoing fallout from a large equity raise.
Short-Seller Hunterbrook Targets Archer Over Dubai Airshow
One of the biggest narrative drivers on Friday was a new short report from Hunterbrook Media and Hunterbrook Capital, which disclosed a short position in ACHR and a long position in competitor Joby Aviation (NYSE: JOBY). [7]
Key allegations in the report:
- Dubai Airshow flight that never happened: Hunterbrook argues that Archer heavily promoted a milestone public flight of its Midnight eVTOL at the 2025 Dubai Airshow but never actually flew at the show, instead displaying a static full‑scale aircraft. [8]
- Flight footage from another airport: The report claims video footage Archer touted during the event was filmed at Al Ain International Airport, more than 50 miles from the airshow venue, rather than at the show itself. [9]
- Pattern of missed public demos: Hunterbrook also points to a previously canceled demonstration in Japan, where a partner later described Archer’s airframe as a “full-scale static aircraft display” rather than a fully functional air taxi. [10]
Benzinga reports that, despite the report’s wide circulation on Friday morning, ACHR shares were trading modestly higher around midday, with the stock essentially shrugging off the initial selling pressure by the afternoon. [11]
The report intensifies a long‑running debate about how far along Archer’s technology really is and whether the company’s marketing has run ahead of its flight test achievements.
Joby Lawsuit Adds Legal Overhang
Compounding the pressure, Archer now faces a new lawsuit from rival Joby Aviation.
According to filings reported by Reuters and Axios, Joby has sued Archer and a former Joby employee, George Kivork, in a California court, alleging that Kivork downloaded and transferred confidential business files before joining Archer. Joby claims those materials—covering business strategy, partnership terms, and aircraft details—were used to interfere with at least one real‑estate development deal. [12]
Archer denies the allegations, says it has no deal with the developer in question, and calls the suit “baseless litigation” designed to blunt fair competition in the emerging eVTOL market. [13]
For investors, the lawsuit introduces two new risks:
- Headline risk and legal costs if the case drags on.
- Perception risk—this is not Archer’s first time facing IP‑related accusations, after an earlier high‑profile dispute (later settled) involving Wisk/Boeing. [14]
So far, the market appears more focused on business fundamentals and deal flow than on the legal storyline, but it’s another source of uncertainty.
Saudi “Sandbox” and Defense Powertrain Deal Support the Bull Case
Despite the short‑seller scrutiny and lawsuit, Archer has announced several strategic wins in November that underpin the long‑term growth story.
Partnership in Saudi Arabia
On November 19, Archer unveiled a partnership with The Helicopter Company (THC) and Red Sea Global, both backed by Saudi Arabia’s Public Investment Fund (PIF). The collaboration will:
- Create a “sandbox” testing environment in the Kingdom for Archer’s Midnight eVTOL.
- Integrate air taxis into tourism and resort transportation networks, especially at Red Sea Global’s luxury developments. [15]
The initiative is part of Archer’s broader push into international markets, following earlier mobility projects announced in South Korea and Japan. [16]
Defense Revenue via Anduril and EDGE
Archer is also moving beyond passenger air taxis into defense and unmanned systems:
- The company will supply its Midnight‑derived electric powertrain for the Omen autonomous air vehicle, a drone program led by U.S. defense tech firm Anduril Industries and UAE group EDGE. [17]
- The UAE has already committed to 50 Omen units, giving Archer its first third‑party commercialization of its powertrain and a potential new revenue stream. [18]
For a pre‑revenue company, this kind of platform‑licensing deal can be important: it monetizes engineering know‑how before full passenger certification and diversifies away from a single business model.
Hawthorne Airport Deal and $650M Equity Raise: Big Bet, Big Dilution
Earlier in November, ACHR shares sold off after the company announced a major capital raise and infrastructure bet in Los Angeles.
Buying Control of Hawthorne Airport
Archer is acquiring the master lease and key subleases for Hawthorne Municipal Airport, a small airport in the Los Angeles area, for about $126 million in cash. [19]
- The site is intended to become Archer’s main LA air‑taxi hub and AI testbed, taking advantage of proximity to venues like SoFi Stadium and Intuit Dome. [20]
- Local coverage notes that Hawthorne still owns the airport, while Archer is effectively buying long‑term control via the ground lease—something that has already stirred debate among residents concerned about noise and transparency. [21]
Funding the Vision: $650 Million Share Sale
To help finance the Hawthorne transaction and ongoing operations, Archer raised about $650 million through a new equity offering, selling roughly 81 million shares, according to analyst and media reports. [22]
While the capital raise improves liquidity, it also:
- Dilutes existing shareholders, contributing to the steep price drop seen since early November. [23]
- Highlights how dependent Archer still is on the equity markets to fund its path to commercialization.
Given that TipRanks and other data providers currently put Archer’s market cap around $5.4 billion, the raise represents a meaningful chunk of the company’s value. [24]
Q3 2025 Earnings: Big Losses, Big War Chest, Still No Revenue
Archer reported Q3 2025 results on November 6, and the numbers underscore both the scale of the opportunity and the magnitude of the risk.
Income Statement Snapshot
From company filings and third‑party summaries: [25]
- Revenue: Essentially zero in Q3 2025, as the company is still pre‑commercial.
- Net loss: About $129.9 million for the quarter, up from roughly $115 million a year earlier.
- Operating expenses: Around $174.8 million, with R&D spending near $120.7 million, reflecting heavy engineering and certification costs.
- EPS: Loss of roughly $0.20 per share, which various trackers show as in line with or slightly better than Wall Street expectations that ranged around a $0.24 loss.
Balance Sheet and Liquidity
On the positive side, Archer ended Q3 with substantial liquidity:
- Cash: Around $595 million in cash.
- Short‑term investments: Roughly $1.05 billion, for total liquid resources in the $1.6 billion neighborhood before the additional $650 million raise. [26]
The company also raised about $46 million in Q3 via an at‑the‑market equity program and booked a non‑cash $29 million gain tied to warrant revaluations. [27]
This gives Archer a sizeable cash runway, but the ongoing quarterly burn of around $130 million means the company must execute on certification, commercialization, and partnerships to justify continued dilution.
Regulatory and Strategic Tailwinds: FAA, LA28 Olympics, White House Pilot Program
For long‑term investors, much of the thesis around ACHR comes down to regulatory progress and strategic positioning in urban air mobility.
FAA Certification and Pilot Training
- In February 2025, Archer received its FAA Part 141 certificate, allowing it to run a formally recognized pilot training academy to build a pipeline of Midnight pilots. [28]
- Aviation Week reported in October that Archer is nearing the end of internal testing and expects to begin FAA certification flight‑testing of the Midnight eVTOL in 2026. [29]
These steps don’t guarantee full type certification, but they suggest the company is moving through the regulatory process rather than stuck at the starting line.
White House eVTOL Integration Pilot Program
Archer has also been selected to participate in a White House‑supported eVTOL Integration Pilot Program, designed to test advanced air mobility operations with U.S. airlines and cities in pre‑certification environments. [30]
This gives Archer:
- Access to real‑world operating environments ahead of full certification.
- A platform to collaborate with regulators and local authorities on vertiports, airspace integration, and safety frameworks.
LA28 Olympics and Global Events
Archer has positioned itself around marquee global events:
- Official air taxi partner for the 2028 Los Angeles Olympics and Paralympics, with plans to shuttle fans and VIPs between venues via Midnight aircraft from a network of vertiports around the city. [31]
- Linkedin and local coverage highlight the use of Hawthorne Airport as a future LA operations hub in time for the 2026 World Cup and LA28 Games. [32]
If executed well, these events could serve as a high‑visibility proof‑of‑concept for urban air taxis—but they also compress Archer’s timelines and raise execution pressure.
IP and Lilium Patent Portfolio
In the broader competitive landscape, Archer recently won a bid to acquire more than 300 patents from bankrupt German eVTOL rival Lilium for about €18 million, adding to what reports describe as an IP portfolio of roughly 1,000 patents. [33]
This bolsters Archer’s technological moat and could strengthen its hand in future licensing or legal disputes.
Capital Structure Moves: Small Resale Filing on Top of Big Issuance
Beyond the $650 million follow‑on offering, Archer also filed a prospectus supplement this week allowing the resale of 1,095,321 Class A shares that were originally issued under a Stock Retainer Agreement dated November 5, 2025. [34]
Because these are already‑issued shares registered for resale by existing holders, the filing itself doesn’t raise fresh capital for Archer but adds to potential share supply in the market, modestly contributing to selling pressure if holders decide to cash out.
How Investors May Read Today’s ACHR Move
Putting it all together, today’s positive close for ACHR looks like the market balancing heavy near‑term risk against substantial long‑term optionality.
Points Supporting the Bull Case
- Large cash balance and new capital to fund years of R&D and commercialization. [35]
- Strategic partnerships in Saudi Arabia, the U.S., and Asia, plus the Anduril/EDGE drone deal that opens up defense revenue potential. [36]
- High‑profile event exposure at the LA28 Olympics and 2026 World Cup, with Hawthorne as a network hub. [37]
- Regulatory progress via FAA pilot‑training certification and upcoming certification flight tests. [38]
- Support from institutional investors like ARK Invest, which has continued adding to its ACHR stake even during recent weakness. [39]
Key Risks and Bearish Arguments
- The company is still pre‑revenue, burning over $100 million per quarter, and remains years away from fully scaled commercial operations. [40]
- Recent dilution—$650 million in new equity plus ongoing at‑the‑market issuance—has materially expanded the share count. [41]
- The Hunterbrook short report raises uncomfortable questions about transparency and execution around public demonstrations and timelines. [42]
- The Joby lawsuit adds legal and reputational overhang at a time when regulators and cities are watching the sector closely. [43]
- Competition in eVTOL is intense, with rivals like Joby advancing their own test flights and international partnerships. [44]
Bottom Line on ACHR Stock for November 21, 2025
ACHR’s rebound today doesn’t eliminate the concerns raised by short sellers, equity dilution, or ongoing losses, but it does show resilience in the face of negative headlines. The stock is trading like what it is: a high‑beta, speculative bet on a future air‑taxi network backed by big partners, big capital needs, and big technological uncertainty.
For readers following Archer Aviation:
- Expect continued volatility as new regulatory milestones, legal developments, and partnership updates roll in.
- The long‑term thesis hinges on execution—getting Midnight certified, operational, and profitable before the cash runway and investor patience run thin.
- Any decision to buy, hold, or sell ACHR should factor in personal risk tolerance, portfolio diversification, and the possibility that even promising eVTOL stories may not translate into shareholder returns.
This article is for information and news purposes only and should not be considered financial advice. Always do your own research or consult a licensed financial professional before making investment decisions.
References
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