Archer Aviation (ACHR) Stock Surges on Tesla Partnership Speculation

TLDR

Table of Contents

Archer Aviation stock jumped 12.67% on Friday following a video showing its Midnight aircraft displayed with a Tesla Optimus robot and car
Tesla posted a mysterious teaser video on Sunday hinting at a potential announcement on October 7, fueling speculation about a partnership with Archer
The company demonstrated its Midnight aircraft at the California International Airshow, though it performed a conventional rather than vertical takeoff
Archer is participating in a federal pilot program with United Airlines to accelerate air taxi deployment in the U.S.
The stock has gained 16.6% year-to-date despite negative profitability metrics including $206 million in net losses

Archer Aviation stock climbed over 12% on Friday as retail traders buzzed about a possible deal with Elon Musk’s Tesla. The speculation reached fever pitch after both companies posted videos that appeared to link their brands.

IS $TSLA ABOUT TO ANNOUNCE SOMETHING BIG WITH $ACHR TUESDAY?
Tesla teased a propeller-drone video for an Oct 7 reveal & a tie-up makes sense as Tesla expands real-world AI into air mobility while Archer brings certified eVTOL aircraft & FAA momentum.pic.twitter.com/3sSYEMVFAS
— Shay Boloor (@StockSavvyShay) October 5, 2025

The air taxi maker shared footage showing its Midnight aircraft positioned next to a Tesla Optimus robot and one of the company’s vehicles. The post triggered immediate questions about whether a formal partnership was in the works.

Tesla added fuel to the fire on Sunday with its own cryptic video. The clip showed a turbine-like object bearing the Tesla logo spinning rapidly. The post suggested an announcement could come on October 7.

Retail sentiment on Stocktwits turned bullish as traders debated what the videos might mean. Message volume spiked to high levels. Some traders pointed out that Archer likely wouldn’t have featured Tesla products without permission.

Federal Program and United Airlines Partnership

Beyond the Tesla speculation, Archer announced participation in a federal pilot program last month. The initiative aims to speed up air taxi deployment across the United States.

United Airlines is working with Archer on trial operations. The partnership represents a concrete step toward commercial service. Archer’s stock has gained 16.6% in 2025 despite mounting losses.

The company demonstrated Midnight at the California International Airshow over the weekend. Joby Aviation, a competitor, also showcased its aircraft at the event. Business Insider reported that Archer’s demo involved a conventional takeoff rather than the vertical launch the aircraft is designed for.

Archer’s financial position shows $1.7 billion in cash reserves. The company maintains a current ratio of 22.3, indicating strong liquidity. Total debt to equity stands at just 0.05.

Recent Developments and Market Position

The company recently formed a partnership with Soracle in Osaka. It also completed high-altitude tests of the Midnight aircraft. These tests demonstrated operational capabilities at demanding flight conditions.

Archer posted an operating loss of $176.1 million in its latest reporting period. Net income came in at negative $206 million. The company continues to invest heavily in research and development.

Elon Musk previously expressed views about drone technology importance. “We better figure out how to build drones at scale fast, or we are doomed to be a vassal state,” he said in July. The comment has taken on new relevance given the current speculation.

Grizzly Research released a short report on Archer in August. The report accused the company of overstating its technological progress. It also claimed Archer relied on misleading public relations to support its valuation.

The stock closed at $11.47 on Friday, up from $9.53 earlier in the week. This marked the best single-day performance in over four and a half months. Trading volume supported the bullish move with strong buying interest at current levels.

Archer’s enterprise value sits at approximately $5.8 billion. The valuation reflects investor interest in the emerging air taxi market. Major cities worldwide are considering eVTOL aircraft as alternatives to road travel.

The company faces competition from multiple players in the space. Joby Aviation remains a primary rival. Both companies are racing to secure Federal Aviation Administration certifications.

Archer is also expanding internationally through partnerships in Tokyo and the United Arab Emirates. These deals position the company for early commercialization outside the U.S. market.

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