Archer Aviation Inc. (ACHR) saw its shares tumble 13.2% to $5.54 on Friday, marking a sharp decline as broader market sentiment turned against growth-oriented companies. The stock touched a session low near $5.39, with trading volume surging past 54 million shares, well above average levels.
The sell-off was triggered by a stronger-than-expected May jobs report, which showed the U.S. economy adding 172,000 positions, significantly beating forecasts. This data reignited concerns that the Federal Reserve may maintain its hawkish monetary policy stance for longer, putting pressure on high-growth, pre-revenue companies like Archer that rely on discounted future cash flows.
Archer, which is still in the pre-revenue phase with significant cash burn, is particularly vulnerable to rising interest rates. The company reported a net loss of $217.7 million in the first quarter, with an adjusted EBITDA loss of $172.5 million. It ended March with $1.78 billion in cash and equivalents, but guided for a second-quarter adjusted EBITDA loss between $170 million and $200 million.
The broader market rout saw the Nasdaq Composite fall 4.18%, the S&P 500 drop 2.64%, and the Dow Jones Industrial Average lose 1.35%. Other electric vertical takeoff and landing (eVTOL) stocks were also hit hard, with Joby Aviation sliding 14.3% and Eve Holding down 9.4%.
Despite the current headwinds, Archer is making progress on key milestones. The company completed Phase 3 of the FAA's four-step Type Certification process for its Midnight aircraft in May, a critical step before commercial operations can begin. CEO Adam Goldstein has emphasized that Archer is more than just an air taxi company, highlighting its ambitions in defense and software licensing.
Investors are now looking ahead to two major tests next week. On Wednesday, June 10, the Bureau of Labor Statistics will release May CPI data, followed by PPI on Thursday, June 11. These inflation readings will be closely watched for their potential impact on interest rate expectations and, consequently, on growth stocks like Archer.
Archer also faces its own operational deadlines. The company aims to conduct a piloted transition flight—moving from vertical lift to wing-borne forward flight—in the second half of the year, a key test for the Midnight aircraft. Any delays in flight testing or FAA certification could add further pressure on the stock.
With the stock already down sharply, the coming week will be pivotal. A higher-than-expected inflation print could exacerbate selling pressure, while positive certification news or a soft CPI report might provide a temporary reprieve. However, as long as Archer remains pre-revenue and cash-burning, the stock is likely to remain sensitive to macroeconomic shifts and company-specific milestones.
