Archer Aviation Stock Steadies After Short-Seller Report

Key Points

• Archer Aviation's stock price is stabilizing as the market digests recent short-seller claims, with attention now firmly on the company's execution of key milestones.
• Strong underlying institutional interest reported prior to recent events, coupled with positive Q1 financial results, provides a foundation of investor confidence.
• Upcoming flight demonstrations and the planned UAE commercial launch are critical validation points that could significantly influence Archer's future stock trajectory.

Archer Aviation NYSE: ACHR recently found itself in the spotlight after a critical report from short-seller Culper Research on May 20th caused its stock to dip. However, in the days since, Archer’s shares have shown signs of stabilizing. At midday on May 29, 2025, the stock price was approximately $10.66. Acher Aviation’s stock activity, since the report suggests the market might be looking past the initial shock.

Now, investor attention is sharply focused on Archer's upcoming operational milestones. Can the company deliver the flight demonstrations needed to fully counter the short-seller's claims and propel the stock forward?

How Did Archer Stock Respond to Short Seller Claims?

Culper Research's report on May 20 didn't pull any punches. It accused Archer Aviation of misleading investors about its progress. Key allegations included questions about testing timelines for its Midnight eVTOL aircraft and the validity of a key flight milestone in June 2024. Archer quickly responded, calling the claims "baseless" and questioning Culper's credibility as a research firm.

What happened to the stock?

• Initial Drop: Archer's stock price fell sharply right after the report, by as much as 12-14% during trading on May 20 and 21.
• Finding a Floor: Over the following days, up to May 29, the stock price showed signs of stabilizing. It even saw some upward movement on May 27 and 28, closing at $10.93 and $10.95, respectively.
• Market Interpretation: This stabilization might mean a couple of things. First, the market quickly priced in the short-seller's arguments. Second, without new, equally damaging information from Culper immediately following up, some investors may be taking a "wait and see" approach. They might be looking for Archer to prove its case through actions, not just words.

Recent financial news has highlighted the ongoing dispute between the two organizations, presenting both perspectives. This media coverage has likely confused most investors, further stalling Archer's stock price progress as the market awaits a resolution.

What Archer’s Institutional Filings Reveal

While daily stock prices can be volatile, looking at who owns a company can offer a different perspective. Reports from large institutional investors (like pension funds and investment firms) about their holdings at the end of the fourth quarter of 2024 continued to be filed with the Securities and Exchange Commission (SEC) during the past few weeks. These filings continue to show that many major institutions were increasing their investments in Archer before the short report surfaced.

This kind of activity from large, sophisticated investors often suggests they've done their homework and believe in a company's long-term plans. This implies that they saw fundamental value in Archer leading into 2025. Archer's strong Q1 2025 financial results, reported on May 12, also provide a solid foundation.

The company announced an earnings per share (EPS) that beat analyst expectations and confirmed its cash position exceeded $1 billion. This financial health is crucial for a company still developing its core product.

Archer's Next Demonstrations Are Critical

The most effective way for Archer to answer the short-seller's claims is through clear, verifiable progress. Investor attention is now firmly fixed on the company’s ability to deliver on its stated operational targets.

Key upcoming milestones include:

• UAE Deployment: Archer plans to deliver its first piloted Midnight aircraft to the United Arab Emirates this summer (2025). The goal is to start generating revenue there later in the year through its "Launch Edition" program with partners like Abu Dhabi Aviation.
• Manufacturing Goals: The company aims to build up to ten Midnight aircraft at its Georgia facility in 2025. Hitting this target would demonstrate its ability to scale production.
• FAA Certification: Continued progress towards getting full Type Certification from the Federal Aviation Administration for its Midnight aircraft in the U.S. (targeted for late 2025) remains a top priority.
• New Initiatives: Updates on the UK cargo eVTOL testing program with Anduril UK could also show operational capability in new areas.

The successful execution of these milestones, particularly visible flight demonstrations leading to early commercial operations, would directly counter many of the short-seller's core allegations regarding aircraft readiness and testing progress. As the saying goes, actions speak louder than words.

Holding Pattern or Launchpad? Archer's Next Moves Will Tell

Archer Aviation's stock is in a period of consolidation after the initial impact of the Culper Research report. The market has heard the allegations and the company's defense.

Now, it seems to be waiting for Archer to deliver concrete proof of its capabilities through upcoming operational validation. 

If Archer successfully executes its flight demonstrations, meets its UAE deployment timelines, and continues to progress with manufacturing and certification, the questions raised by the short report will likely become less significant for many investors. 

For those who believe in Archer’s technology and the future of the eVTOL sector, this holding pattern could be an excellent period to accumulate shares before the company's next set of crucial operational catalysts.