Archer Aviation (ACHR +0.54%) stock got hit with big sell-offs over the last week of trading. The electric vertical take-off and landing (eVTOL) vehicle specialist's share price fell 15.7% from the previous week's market close.
After a big valuation surge in the previous week's trading, Archer Aviation stock lost ground this week. Despite the big sell-offs, the company's share price is still up roughly 15% year to date.
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Archer Aviation stock sank following comments from Joby's CEO
Archer Aviation stock saw some big gains heading into the last week of trading, with valuation surges connected to news that its competitor Joby Aviation was ramping up its manufacturing capacity and output. Joby's manufacturing expansion was taken as an indication that the company may have been optimistic about receiving the necessary regulatory approvals from the Federal Aviation Administration (FAA). However, subsequent comments from the company's CEO poured some water on those hopes.
In an interview with The Information, Joby CEO JoeBen Bevirt said that his company had been making progress in its quest for regulatory approval with the FAA but that it was "a very significant undertaking." Elsewhere in the article, Bevirt was described as seeming "grim" about the remaining process needed for his company's eVTOL vehicles to receive regulatory go-ahead from the FAA.
NYSE: ACHR
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What's next for Archer Aviation?
On the one hand, if Joby is having difficulty moving forward with the FAA certification processes needed for its vehicles to begin commercial flights, then it's reasonable to expect that Archer is facing similar dynamics. On the other hand, both companies could still be poised to launch in the Saudi Arabian market in the not-too-distant future, and each company also seems to have some significant opportunities in the defense space.
Investors will get a more detailed look at recent business developments for Archer and its forward performance outlook when the company publishes its second-quarter results and hosts its investor conference call after the market closes on Aug. 11.
