Archer Aviation Stock Is Plummeting Today — Is It Time to Buy?

On Monday, the stocks of Archer Aviation (ACHR) experienced a significant drop during trading hours. By 3:45 p.m. ET, their share price had fallen by 11%, contrasting with the S&P 500’s 0.2% increase and the Nasdaq Composite’s 0.4% rise at the same time of the day’s market activity.

Today, Archer Aviation is experiencing a squeeze in its valuation due to two negative factors. This company specializing in electric vertical takeoff and landing (eVTOL) aircraft became publicly traded through a merger with a Special Purpose Acquisition Company (SPAC) in 2021. However, some investors are filing lawsuits claiming that the architects of this merger provided misleading information regarding the initial launch timeline for one of Archer’s prototypes.

In simpler terms, due to lackluster earnings in a recent quarter, Stellantis, a significant investor in Archer, has decided not to proceed with the development of hydrogen-powered cars. This move has left some investors concerned that Stellantis might lessen its backing for Archer, an eVTOL (electric Vertical Takeoff and Landing) specialist.

Is Archer Aviation stock a buy right now?

Archer, a company specializing in electric Vertical Takeoff and Landing (eVTOL) vehicles, finds immense potential for expansion in both private and public sectors. However, as a pre-revenue business, its stock is susceptible to significant fluctuations due to news events and changes in overall market mood. This volatility has been evident this year, with the share price experiencing notable ups and downs. Despite today’s dip, the company’s stock is still approximately 21% higher than at the start of the year.

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In simpler terms, although Archer Aviation stock may remain unpredictable in the short term, factors currently pushing it down are not expected to significantly impact its long-term prospects. Even if legal issues arise from the eVTOL specialist’s merger with a SPAC, these should be resolved at a cost that’s relatively low compared to the company’s current market value. Additionally, there’s no clear evidence that Stellantis plans to reduce financial backing for Archer Aviation. As such, while Archer Aviation stock remains a high-risk, potentially high-reward investment, today’s news doesn’t change the overall optimistic outlook for the stock.

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2025-07-21 23:27