Shares of the electric vertical takeoff and landing (eVTOL) company Archer Aviation (ACHR -0.96%) 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.
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.
