TLDR
- Archer Aviation stock surged 12.67% Friday after posting video featuring Tesla products alongside its Midnight aircraft
- Tesla released cryptic teaser video Sunday suggesting October 7 announcement, fueling partnership speculation
- Company demonstrated Midnight aircraft at California International Airshow with conventional takeoff
- Archer participating in federal pilot program with United Airlines to accelerate air taxi deployment
- Stock up 16.6% year-to-date despite $206 million net loss and August short seller report
Archer Aviation shares rocketed more than 12% Friday as traders speculated about a potential Tesla collaboration. The air taxi developer sparked the rumors after posting a video showing its Midnight aircraft displayed with Tesla’s Optimus robot and vehicle.
The timing caught attention across trading platforms. Tesla followed up Sunday with its own mysterious video featuring a spinning turbine bearing the company logo. The post hinted at a possible announcement coming October 7.
Retail traders on Stocktwits pushed sentiment into bullish territory. Message volume hit high levels as users debated the implications. Many noted Archer wouldn’t likely showcase Tesla products without explicit approval.
Federal Program Brings United Airlines Into Picture
Beyond the Tesla buzz, Archer made concrete progress last month. The company joined a federal pilot program designed to fast-track air taxi operations in the United States.
United Airlines is partnering with Archer for trial flights. The collaboration marks a real step toward commercial service launch. Financial data shows Archer holds $1.7 billion in cash with a current ratio of 22.3.
The company faces continued losses with operating income at negative $176.1 million. Net income came in at negative $206 million in the latest period. Debt remains minimal with total debt to equity at 0.05.
Airshow Demo and Competitive Landscape
Archer demonstrated Midnight at the California International Airshow over the weekend. Competitor Joby Aviation also displayed its aircraft at the event. Reports indicate Archer’s demo involved a conventional takeoff rather than vertical launch.
The company completed high-altitude testing of Midnight recently. It also announced a partnership with Soracle in Osaka. Additional deals in Tokyo and the United Arab Emirates position Archer for international expansion.
Elon Musk commented on drone technology importance in July. “We better figure out how to build drones at scale fast, or we are doomed to be a vassal state,” he stated. The remarks gained renewed relevance given current speculation.
Grizzly Research published a short report on Archer in August. The report claimed the company overstated technological progress. It accused Archer of using misleading communications to support its $5.8 billion enterprise value.
The stock closed at $11.47 Friday, up from $9.53 earlier in the week. This represented the strongest single-day gain in over four months. Trading volume supported the move with consistent buying pressure.
Archer competes in the emerging eVTOL market alongside several rivals. Cities worldwide are evaluating electric aircraft as alternatives to ground transportation. The company continues pursuing Federal Aviation Administration certification necessary for commercial operations.
Neither Archer nor Tesla responded to comment requests outside business hours. Traders await potential clarification on October 7 based on Tesla’s video teaser. The partnership speculation comes as Archer pushes toward early commercialization goals.
Stock performance year-to-date shows 16.6% gains despite ongoing profitability challenges. The company maintains heavy research and development spending as it races competitors to market.
