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Why Archer Aviation Stock Is Down 50% From its 52-Week High In 2025

Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Dec 31, 2025

Key Stats for Archer Aviation Stock

  • YTD Price Change for Archer Aviation stock: -21%
  • $ACHR Share Price as of Dec. 30: $7.55
  • 52-Week High: $14.62
  • $ACHR Stock Price Target: $11.61

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What Happened?

Archer Aviation (ACHR) stock has dropped roughly 50% from its 2025 peak of $14.62, continuing a volatile pattern typical of the electric vertical takeoff and landing industry. The recent selloff accelerated in November when shares hit a low of $5.48 before stabilizing around current levels.

The volatility stems from Archer Aviation’s pre-revenue status and ongoing questions about when these flying taxis will start generating revenue.

The company burned through about $422 million in operating cash over the past year as it worked toward FAA certification and built its first commercial aircraft.

However, recent developments suggest the tide may be turning. Archer announced it is acquiring control of Hawthorne Airport in Los Angeles for $126 million, positioning itself as a key player ahead of the 2028 Olympics.

The company also raised $650 million in new capital, bringing its cash position to over $2 billion. More importantly, Archer received its first commercial payments from Abu Dhabi Aviation under its Launch Edition program and expects to begin recognizing revenue in 2026.

The UAE’s aviation regulator publicly stated that it remains on track for certification as early as Q3 2026, which would enable passenger service.

ACHR Revenue and FCF Estimates (TIKR)

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What the Market Is Telling Us About ACHR Stock

The 50% decline in ACHR stock reflects investor concerns about the long path to profitability and potential equity dilution from continued capital raises. With shares outstanding growing 66% year-over-year to 660 million, existing shareholders are seeing their ownership stakes shrink.

Yet the market may be overlooking significant progress. Archer’s Midnight aircraft recently completed test flights exceeding 55 miles of range, 30 minutes of flight time, and speeds over 150 mph at altitudes up to 10,000 feet. The company is nearing completion of its piloted conventional takeoff-and-landing test campaign.

Strategic partnerships are also materializing.

  • Korean Air selected Archer as its exclusive air taxi partner with plans to purchase up to 100 aircraft.
  • In Japan, Osaka and Tokyo both chose consortiums featuring Archer’s Midnight aircraft for commercial operations.

The company’s valuation has become more compelling after the correction. At an enterprise value of $4.4 billion and consensus 2027 revenue estimates of $298 million, ACHR stock trades at an estimated 15x forward sales. By comparison, rival Joby Aviation trades at 58x estimated 2027 revenues using the same methodology.

However, risks remain substantial. Joby appears to be further along in FAA certification and has partnerships with Uber and Delta Air Lines.

For investors willing to accept volatility and a multi-year timeline, the recent 50% decline may represent an opportunity. The combination of upcoming UAE commercialization, progress toward FAA certification, and a strengthened balance sheet could drive a recovery in 2026.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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