Archer Aviation Stock: What’s Getting Retail Traders Excited About This Airtaxi Maker?

Archer Aviation (ACHR) stock saw a spike in retail investor chatter late Sunday after the company’s demonstration of its Midnight aircraft in an airshow, as well as continued speculation about a potential tie-up with Elon Musk’s Tesla.

The airtaxi maker’s stock surged 13.7% on Friday, to log the best day in over four and a half months, after it posted a video that showed its flagship Midnight electric vertical take off and landing (eVTOL), alongside a Tesla Optimus robot, as well as a car.

Separately, on Sunday, Tesla posted a short video on X, which showed a turbine-like object with the Tesla logo at its center rotating rapidly. The video also hinted that the company could make an announcement about it on Oct. 7. Musk has previously spoken about the importance of drones.

“We better figure out how to build drones at scale fast, or we are doomed to be a vassal state,” he said in July.

Retail sentiment on Stocktwits about Archer was in the ‘bullish’ territory at the time of writing, while retail chatter was ‘high.’

While retail traders believe that a deal could be announced soon, neither Archer nor Tesla immediately responded to Stocktwits’ requests for comment outside business hours. Like its peer, Joby Aviation, Archer is competing in the nascent eVTOL industry, with many large cities worldwide considering the aircraft as an alternative to road travel to reduce traffic congestion and pollution.

“If [the] rumour with Tesla partnership comes true, then this will go to Mars!” one user wrote.

Another trader suggested that it was unlikely Archer would have posted the video without explicit permission from Tesla, implying that a ride-hailing partnership may be on the cards.

Separately, the company and its peer Joby demonstrated their respective aircraft to a live audience at the California International Airshow. However, according to a Business Insider report, Midnight demonstrated a conventional, non-vertical takeoff.

Including Friday’s close, Archer stock has gained 16.6% this year. Last month, the company announced that it was participating in a federal pilot program aimed at accelerating the deployment of air taxis and was partnering with United Airlines, among others, to conduct trials.

In August, Grizzly Research released a short report on Archer, accusing the company of overstating its technological progress and relying on misleading PR to support its valuation.

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