Tesla’s Announcement Turned Out to be Completely Unrelated to Aviation

Archer Aviation’s brief moment in the Tesla spotlight ended as quickly as it began. After days of social media buzz suggesting a possible partnership between the two companies, Tesla’s October 7 announcement came and went without a single mention of aviation.

The result was painful to watch: Archer’s shares slid 8.6%, erasing much of the speculative surge that had lifted the stock more than 30% in the days prior.

The hype began when Tesla posted a teaser video on X showing a turbine-like image with its logo, leading many to assume the company was entering the electric vertical takeoff and landing (eVTOL) market. Archer became the obvious choice after it released its own promotional clip showing its Midnight aircraft alongside Tesla vehicles and the Optimus robot. Investors took the pairing as a sign of a collaboration.

When Tesla revealed that the “major announcement” was simply cheaper versions of its Model 3 and Model Y cars, the excitement quickly fell off. Shares, which had touched a five-month high of $13.81 amidst the buzz, settled far lower.

Even without the Musk seal of approval, Archer has built a respectable foundation. The company recently announced a $500 million order from Soracle Corporation, which is a joint venture between Japan Airlines and Sumitomo Corporation, for the purchase of 100 Midnight aircraft. The deal aims to launch air taxi services in major Japanese cities, including Tokyo, Osaka, and Nagoya.

Archer has also secured partnerships closer to home. United Airlines has invested in the company and plans to use Archer’s aircraft for short urban connections. Los Angeles has tapped the company as its exclusive air mobility provider for the 2028 Olympics.

The company’s eVTOL continues to crawl toward FAA type certification, which stands as the largest hurdle before passenger service can begin. Archer claims that it remains on track for commercial operations later this decade.

FMI: https://archer.com