Despite Big Technical Progress, Archer Stock Dips—Here’s Why

Archer Aviation has hit an important new stage in getting its Midnight electric air taxi ready for passengers. The company announced in early June that its innovative aircraft had started piloted flight tests. This is a big step forward, moving the Midnight from flying on its own (autonomously) to now having a human pilot in the cockpit.

These first piloted flights successfully showed off the aircraft’s ability to take off and land like a traditional airplane, known as conventional take-off and landing (CTOL). Despite this new positive advancement, the stock market’s reaction was muted.

Midnight’s Versatility: Archer Proves Midnight’s CTOL Strength

The initial piloted flights had Archer’s Chief Test Pilot, Jeff Greenwood, guiding the Midnight aircraft. During these critical tests, the aircraft performed like a standard airplane, taking off and landing on a runway. It reached speeds of up to 125 miles per hour and flew at altitudes over 1,500 feet.

Showing that the Midnight can perform these CTOL flights is a key achievement for Archer for several reasons:

• Proves Aircraft Strength: It demonstrates that the Midnight’s design, especially its landing gear, is engineered strong enough for more conventional types of flight operations, not just vertical ones.

• Increases Flexibility: Midnight’s combined CTOL and vertical takeoff and landing (VTOL) features enable it to function from a broader array of sites. Beyond specialized vertiports, this includes the majority of current airfields, spanning across most regional and local facilities. This adaptability is deemed by Archer to enhance safety and is highly valued by its clientele, notably its current defense partners.

• Builds Confidence: Archer’s Chief Test Pilot Jeff Greenwood reported that the Midnight aircraft flew smoothly and predictably, much like it did in the simulator. This consistency is a good sign of solid engineering.

Successfully flying with a pilot, even in this conventional mode, is a significant step in demonstrating that the aircraft is well-designed and its control systems work effectively. This builds foundational credibility for the Midnight.

What’s Next for Midnight? Archer’s Flight Test Roadmap

These initial piloted flights are just one part of a long and detailed testing program Archer must complete. The goal is to obtain certification for the Midnight aircraft and prepare it for commercial service in the transportation sector.

The main aim is to collect vital data. This data will support Archer’s application for “Type Certification” from aviation authorities like the U.S. Federal Aviation Administration (FAA) and the UAE’s General Civil Aviation Authority (GCAA). Type Certification is a mandatory approval that an aircraft must receive before it can carry passengers commercially.

Investors will be watching for several key upcoming milestones:

• Piloted VTOL Flights: Demonstrating the aircraft’s capability to routinely take off and land vertically with a pilot on board.

• Piloted Full Transition Flights: This is a critical test for an eVTOL. It means the aircraft must smoothly transition from vertical lift-off (similar to a helicopter) to forward, wing-supported flight (like an airplane), and then back to a vertical landing, all under pilot control.

• Progress towards FAA Type Certification: Archer is aiming for this in late 2025.

Successfully completing these next steps will be essential for Archer to meet its goals and build even greater investor confidence.

Progress Made, But Market Looks for More

Despite the positive news of the piloted CTOL flights, Archer Aviation’s stock did not see a significant jump. On the day of the announcement, shares closed down about 3.33%. As of early June, the stock traded around $9.81, with a market capitalization of approximately $5.39 billion. While the stock has shown some positive year-to-date (YTD) performance after a strong May, the immediate market reaction to this particular news was muted.

There are a few potential reasons for this:

• Focus on Bigger Milestones: Investors in the eVTOL space understand the development process. While piloted CTOL flights are a significant step forward, many are waiting for more complex achievements, such as piloted VTOL and, crucially, successful piloted full transition flights. These are seen as more significant proof points of the technology’s readiness.

• Recent Short Report: A critical report from short-seller Culper Research in late May 2025 questioned Archer’s progress. The shadow of this report might still be making some investors cautious, leading them to wait for more definitive positive news.

• General Market Conditions: The broader stock market’s behavior and sentiment towards growth and technology stocks can also influence how news is received.

Even with this muted short-term reaction, Archer Aviation’s analysts generally maintain a Moderate Buy consensus rating on Archer, with an average price target of $12.50, suggesting they still see long-term upside. This suggests that while the daily market may be cautious, many experts remain confident in the company’s overall potential.

A Key Step Forward, But the Journey Continues

Archer Aviation’s successful start to piloted conventional take-off and landing flight tests with its Midnight aircraft is a clear and positive step forward. It’s a tangible demonstration of progress in the company’s complex aircraft development program, adding to its technical credibility.

For investors, viewing this milestone as a crucial part of a broader journey is essential. The path to making eVTOL air taxis a commercial reality involves many stages. The market’s current reaction suggests it is looking ahead to even more critical flight demonstrations, particularly those involving vertical flight and full transitions with a pilot, as well as definitive news on FAA certification.

This newest achievement demonstrates that Archer is executing its plans effectively. However, the biggest tests and potential rewards still lie ahead as Archer works to prove its technology and business model in the coming months and years.

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