Archer Aviation Inc. (ACHR) stock plummeted 5.20% during Tuesday's intraday trading session, extending recent losses for the electric vertical takeoff and landing (eVTOL) aircraft developer.
The decline follows the company's first-quarter earnings report which showed mixed results. While Archer reported better-than-expected cost control with an adjusted EBITDA loss of $173 million compared to Wall Street's projection of $175 million, sales came in at $1.6 million versus the expected $1.7 million. The company also provided second-quarter guidance projecting an EBITDA loss between $170 million and $200 million.
Investor concerns appear focused on Archer's ongoing cash burn, with the company expected to use approximately $600 million in 2026 and $740 million in 2027 despite having $1.8 billion in liquidity. Additionally, potential delays in the company's planned commercial service in the U.A.E. this year due to geopolitical tensions may be weighing on the stock. Analysts don't expect positive free cash flow until 2029 when sales are projected to reach $1.6 billion.
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