Archer Aviation stock declines amid eVTOL sector volatility

Archer Aviation has experienced a significant decline in its stock price in 2026, falling approximately 50% to 60% since the start of the year. This downturn reflects a broader sector-wide selloff in electric vertical takeoff and landing (eVTOL) stocks, as investors express skepticism regarding the capital requirements and timelines necessary for commercial service. Competitors such as Joby Aviation and Eve have also seen substantial share price decreases.

Despite the financial volatility, Archer has reached several technical milestones. The company became the first eVTOL firm to complete Phase 3 of the FAA’s four-phase type certification process. Additionally, Archer has conducted extensive flight testing, including a September flight of its Midnight aircraft between Salinas and Hollister, California, which completed the trip in roughly 12 minutes.

Challenges for the company include flight-testing timeline adjustments and the ongoing need for regulatory certification to begin generating revenue. However, the long-term potential for the urban air mobility market remains a point of interest for some analysts, with Morgan Stanley previously estimating the sector could reach a $9 trillion valuation by 2050.