BlackRock, the world's largest asset manager, has disclosed a 6.9% passive stake in Archer Aviation Inc. (ACHR) in a Friday securities filing, trimming its position from the 8.1% reported in January. The filing, submitted as a Schedule 13G, indicates the holding is for investment purposes only and not intended to influence control of the electric vertical take-off and landing (eVTOL) aircraft developer.
As of March 31, BlackRock held beneficial ownership of 51,092,109 Class A shares, with sole voting power over 50,103,375 shares. The reduction from the 52,989,964 shares disclosed in its January amendment comes as Archer intensifies its efforts to secure Federal Aviation Administration (FAA) certification for its Midnight aircraft, with the goal of launching passenger flights in 2026.
Regulatory Progress and Financial Landscape
Archer has been making notable strides on the regulatory front. In March, the company announced that the FAA had accepted all of Midnight's Means of Compliance, a comprehensive set of standards required to demonstrate airworthiness. While this does not constitute full certification, it clears the path for finalizing certification plans and preparing for Type Inspection Authorization, a phase that could see FAA-supervised flight tests begin as early as this year.
Despite the progress, Archer faces significant financial challenges. The company posted a net loss of $618.2 million for the full year 2025, with cash, cash equivalents, and short-term investments totaling approximately $1.96 billion. For the first quarter of 2026, management projects an adjusted EBITDA loss between $160 million and $180 million. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, and certain other items.
Shareholder Vote and Strategic Moves
Archer's annual meeting is scheduled for June 26, where shareholders will vote on a proposal to reincorporate the company from Delaware to Texas. Founder and CEO Adam Goldstein has urged investors to support the move, citing Texas as the appropriate legal home given the company's expected long-term business operations there and its lack of presence in Delaware.
The company also secured a spot in the White House's eVTOL Integration Pilot Program, partnering with entities in Texas, Florida, and New York to develop local crews, infrastructure, and operational procedures. Archer aims to commence Midnight flights as early as the second half of 2026.
Market Context and Competition
Archer shares closed at $5.70 on Friday, down 1.2%, giving the company a market capitalization of approximately $3.77 billion. Its primary publicly traded rival, Joby Aviation (JOBY), commands a market cap near $7.18 billion. Joby recently began test flights with its first certification aircraft, entering the Type Inspection Authorization process and planning FAA pilot evaluations later this year.
The eVTOL sector remains highly competitive, with both companies racing to achieve certification and commercial deployment. Archer's proxy materials outline numerous risks, including certification hurdles, manufacturing scale-up, supplier reliability, airspace integration, vertiport infrastructure, municipal approvals, capital market access, and the potential for aircraft incidents.
BlackRock's reduced stake does not signal activist intentions but keeps the fund above the 5% disclosure threshold. As Archer approaches a pivotal year, investors will be closely watching its ability to convert regulatory milestones into tangible flight operations while managing its cash burn rate.
