Archer Aviation Stock On Course For 4th Straight Weekly Decline Amid Joby Lawsuit — Cathie Wood’s Ark Buys More

• Joby alleged that Archer recruited one of its former employees earlier this year to gain access to confidential information.
• As per Joby, George Kivork, the firm’s U.S. state and local policy lead, downloaded dozens of files and sent some content to his personal email, days before he submitted his resignation to join Archer.
• Archer CEO Adam Goldstein, however, denied any wrongdoing and added that Joby’s accusations are “fantasy.”

Archer Aviation (ACHR) stock was in the spotlight on Friday after rival Joby Aviation filed a lawsuit against the company for alleged corporate espionage.

The stock has fallen over 12.8% this week, on course for the fourth consecutive week of decline. Archer Aviation stock has closed lower in seven of the previous 10 sessions.

What Did Joby Say In The Lawsuit?

According to a lawsuit filed on Wednesday in a California Superior Court in Santa Cruz, Joby alleged that Archer recruited one of its former employees earlier this year to gain access to confidential information, which Joby dubbed “corporate espionage, planned and premeditated.”

As per Joby, George Kivork, the firm’s U.S. state and local policy lead, downloaded dozens of files and sent some content to his personal email, days before he submitted his resignation to join Archer. The airtaxi maker further alleged that a real estate partner, which had signed an exclusive agreement with a partner, informed Joby that Archer had approached it with a “more lucrative deal.”

The two companies are competing in the nascent electric vertical take-off and landing (eVTOL) industry, with many large cities worldwide considering the aircraft as an alternative to road travel to reduce traffic congestion and pollution.

Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations. “Archer brazenly used that stolen information to interfere with
Joby’s exclusive strategic partnership. Significant amounts of other Joby confidential information remain at risk in Kivork and/or Archer’s possession,” Joby said.

Archer CEO Adam Goldstein, however, denied any wrongdoing. “Let me be clear, Archer has no deal with this developer. Joby’s accusations are fantasy. I get why Joby is frustrated…they’ve watched us win key deals time and time again,” he said on X. “Suing us for a deal that we never even bid on is wild. I guess desperation really clouds judgment.”

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Archer was in the ‘bullish’ territory at the time of writing, while traders were 'bearish' on Joby. 

“We are correct in spotting a huge winner that is way oversold. Luck has little to do with this bullish call. Just wait and see,” one user said about Joby.

“Let it be known that as sellers sell, Cathy buys more,” another trader said about Archer.

Ark Investment Picks Up Over 970,000 Archer Shares

Cathie Wood’s Ark Investment Management scooped up 971,423 shares of Archer on Thursday, alongside Nvidia, Bullish, and Coinbase shares. Based on Thursday’s closing price, the firm would have paid about $7.3 million to acquire the shares. The latest acquisition comes after Ark picked up more than 3 million Archer shares earlier this month.

Both companies expect to begin commercial operations in 2026. Archer stock has fallen by more than 30% this year, while Joby stock has gained by more than 58%. In 2023, Archer settled a lawsuit with Boeing’s air taxi unit Wisk Aero over the alleged theft of trade secrets.

Also See: Bitcoin Prices Drop To Near $83,000 — Tom Lee Flags Deep Damage To Market Makers

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on