Archer Aviation shares fell as much as 15% on Friday following the announcement of an $850 million stock offering aimed at funding infrastructure, software development, and upcoming projects, including a high-profile partnership with the 2028 Summer Olympics in Los Angeles, CNBC reports.
The electric vertical takeoff and landing (eVTOL) aircraft company said it sold 85 million shares at $10 each, giving the company an estimated pro forma liquidity of $2 billion. Archer plans to use the funds to accelerate the deployment of its AI-based aviation software platform and to support its “Launch Edition” air taxi program.
“We now have the strongest balance sheet in the sector and the resources we need to execute both here in the US and abroad,” said Archer CEO Adam Goldstein in a company statement. “Archer’s future couldn’t be any brighter.”
The stock offering comes on the heels of a new executive order signed by President Donald Trump, which establishes a federal pilot program to support the development and deployment of eVTOL technologies in the United States. The announcement earlier this week sent shares of Archer and competitor Joby Aviation higher, reflecting renewed investor optimism in the sector.
Despite Friday’s pullback, investor interest in the air taxi space has grown as companies promote eVTOL technology’s potential to reduce urban congestion and carbon emissions. However, industry analysts caution that regulatory approval, safety certification, and infrastructure development remain major hurdles.
Archer has already partnered with United Airlines to develop an airport-based air taxi service and is positioning itself for broader commercial deployment. The company also plans to display its Midnight aircraft at the upcoming Paris Air Show and recently identified the United Arab Emirates as its first international launch market.
Meanwhile, Joby Aviation, one of Archer’s primary rivals, announced last month it received the first $250 million installment from a $500 million agreement with Toyota to help support eVTOL certification and production.
