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Archer Aviation (ACHR) is in focus at the time of writing after the air taxi company said it has raised $300 million from leading institutional investors, including BlackRock.
The electric vertical takeoff and landing (eVTOL) aircraft maker plans on using the new capital to “accelerate the development of its hybrid aircraft platform,” according to its press release on Tuesday.
Additionally, the funding round helped bolster the company’s already-strong financial stature, bringing its total liquidity to about $1 billion. Still, ACHR shares are currently down about 22% from their 2025 high, set early in January.
Why Is Archer Aviation Stock Down on Tuesday?
San Jose, California-headquartered Archer Aviation expects its planned hybrid vehicle to help it tap into the rising demand from the defense sector.
On Tuesday, the eVTOL company also said its adjusted operating expenses remained within its guided range of $95 million to $110 million in its fourth quarter. The firm did, however, acknowledge the possibility of a slight increase in that metric in the first quarter of 2025.
ACHR stock is down about 5% today perhaps because this update may have concerned some investors that a continued increase in operating expenses could result in a need for additional capital in the future.
Should You Invest in ACHR Shares on the Weakness?
Archer Aviation’s stock price decline despite the evidently positive news on Tuesday may be a gift for potential investors, particularly considering the company is on track to launch commercial operations in Abu Dhabi by the end of 2025. If it succeeds in delivering on that promise, ACHR will become one of the very first air taxi companies in the world to go commercial, which may prove to be a meaningful milestone for Archer Aviation stock as commercial operations could unlock its revenue-generating phase as well.
Archer is a distinguished name within the eVTOL space as it has already secured key partnerships with defense as well as automotive giants, including Stellantis (STLA) .
That’s why Wall Street remains bullish on ACHR shares for 2025. Analysts currently have a mean target of $11.33 on Archer Aviation stock, indicating potential upside of 16% from current levels.
