NEW YORK, Feb 25, 2026, 08:25 (EST) — Premarket
- Archer Aviation climbed roughly 1.4% ahead of the bell, building on Tuesday’s advance.
- The company has filed a patent-infringement suit targeting competitor Vertical Aerospace.
- Some traders are shifting their positions before Archer’s March 2 results, looking for updates on cash burn guidance.
Shares of Archer Aviation Inc climbed 1.4% to $7.29 before the bell Wednesday, following news that the company has filed a patent-infringement suit against competitor Vertical Aerospace. (Public)
The court battle hits just as electric air-taxi stocks are already jittery, moving on news about certification, funding, or deals, not actual sales. These companies are working on electric vertical takeoff and landing aircraft, or eVTOLs—vehicles that lift off like helicopters but cruise like planes.
For Archer holders, the lawsuit throws another element into the mix — could intellectual property act as a shield, or turn into a liability? Archer is set to post earnings next week, and traders are working to sift the immediate headlines from anything that actually hits the balance sheet.
Archer, in an 8-K filing, disclosed it has taken legal action in the U.S. District Court for the Eastern District of Texas, accusing Vertical’s “Valo” aircraft of infringing several patents related to its own “Midnight” model. The company wants an injunction, plus monetary damages. (SEC)
Vertical shot back Tuesday, dismissing the allegations as “without merit” and vowing to fight them. “Our focus remains firmly on execution and certification,” said Domhnal Slattery, chair of Vertical Aerospace. (Nasdaq)
Archer shares climbed 3.3% to close at $7.19 Tuesday, moving within a $6.70 to $7.20 range, historical pricing data show. (Investing.com)
The lawsuit lands right after a new round of investor reshuffling in the eVTOL sector. This week, Raymond James analyst Savanthi Syth cut Vertical to Sell, steering attention toward Archer. Syth noted the “market has soured on higher-risk ventures lately.” (Barron’s)
Archer, along with competitors Joby Aviation and Vertical, remains deep in the pre-certification stage and is still a long way from mass production. Delays in this stretch can drive up costs fast, and new funding rounds have the potential to hit valuations. Right now, the conversation mostly circles around timelines and how far their cash will take them.
Patent litigation tends to stretch out, piling on legal bills and distracting management. Missed steps in certification or unexpected expenses? That premarket uptick could disappear fast when the bell rings.
Archer’s next big moment comes after the bell on March 2, with its fourth-quarter and full-year 2025 update. A webcast is on the agenda to walk through the numbers. Cash burn and the road to 2026 milestones—those are the investor focus points. (businesswire.com)
