Why Archer Aviation Stock Is Falling Today
Key Points
Archer Aviation stock is losing steam after flying high yesterday.
Investors were disappointed that speculation about Tesla entering the eVTOL industry didn't pan out.
Archer is a popular stock, but the company doesn't generate any revenue yet.
- 10 stocks we like better than Archer Aviation ›
Shares of the electric vertical takeoff and landing (eVTOL) company Archer Aviation (NYSE: ACHR) are coming in for a hard landing today as investors begin to realize that Tesla's announcement yesterday has nothing to do with aviation.
Archer's stock spiked yesterday on hopes that the eVTOL industry might get some more important news from Tesla entering the market, but the company's announcement was instead focused solely on EVs. As a result, Archer Aviation's shares were down by more than 10% earlier this morning, and had given up 6.5% as of 11:24 a.m. ET.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Archer Aviation.
Archer's stock lifted on speculation, fell on facts
The burgeoning eVTOL market has many investors excited about the prospects of personal aviation transportation, and that's led Archer's share price to experience frequent dramatic price swings.
That was in full effect yesterday when Archer investors pushed its share price higher, partially on speculation that there might be a partnership between Archer and Tesla. Last week, Archer posted a social media video of its Midnight eVTOL next to a Tesla Optimus robot and one of Tesla's EVs. Tesla's cryptic social media posts also spurred speculation that an entirely new product may be announced.
But Tesla's announcement turned out to be just about its own vehicles, specifically cheaper versions of its Model Y and Model 3. That disappointment is bringing Archer's shares back down today.
Sky-high expectations
Archer's share price has soared 267% over the past 12 months, but the company doesn't yet have any revenue. Archer is working on getting full regulatory approvals for its commercial eVTOL, but, as today's fall in stock price indicates, the stock could remain volatile as it works toward that goal.
Should you invest $1,000 in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $642,328!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,270!*
Now, it’s worth noting Stock Advisor’s total average return is 1,064% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 7, 2025
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Recommended Articles
