Archer Aviation Faces 20% Stock Decline in 2025 Amid Regulatory Hurdles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 01 2026
0mins
Source: Fool
- Poor Market Performance: Archer Aviation's stock has declined over 20% in 2025, following a 228.3% increase in 2023, indicating a waning investor confidence that could affect future capital inflows and market positioning.
- Regulatory Approval Progress: While Archer has secured its FAA Operational certification, it still needs Type and Production certifications, facing stringent regulatory hurdles that may delay the launch of its air taxi service, impacting revenue and competitive edge.
- Capital Raising Challenges: The company raised $850 million through new stock offerings in June and plans an additional $650 million offering to fund its acquisition of Hawthorne Airport, which may dilute existing shareholders' equity and affect investor returns.
- International Collaboration Opportunities: Archer's partnerships with Saudi Arabia and Japan Airlines aim to advance eVTOL aircraft certification and market expansion, presenting potential growth avenues despite domestic regulatory challenges.
Analyst Views on ACHR
Wall Street analysts forecast ACHR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACHR is 12.20 USD with a low forecast of 8.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 8.860
Low
8.00
Averages
12.20
High
18.00
Current: 8.860
Low
8.00
Averages
12.20
High
18.00
About ACHR
Archer Aviation Inc. is an aerospace company. It is engaged in providing customers with advanced aircraft and related technologies and services in the United States and internationally in both the commercial and defense sectors. Its commercial line of business consists of the sale of its commercial aircraft (Archer Direct), such as Midnight, to aircraft operators as well as technologies and services related thereto, including commercial launch (certification, testing, training, demonstration, market survey and early trial operations), and maintenance and repair. Its defense line of business consists of the sale of aircraft and related technologies for defense applications. Its initial product is intended to be a hybrid-propulsion, vertical take-off and landing (VTOL) aircraft. Its Midnight aircraft is designed around its proprietary 12-tilt-6 distributed electric propulsion platform. It carries four passengers plus a pilot. The aircraft is purpose-built for air taxi operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
