Archer Aviation Stock Volatility Follows Tesla Partnership Speculation

Archer Aviation's stock experienced dramatic swings this week as speculation about a potential Tesla partnership first ignited investor enthusiasm, then fizzled when Tesla's announcement omitted any reference to the air taxi manufacturer. Shares surged 34% between Friday and Monday after Archer released a promotional video featuring its 'Midnight' aircraft alongside Tesla vehicles and the Optimus robot, sparking rumors of a collaboration or even an acquisition.

Tesla further fueled speculation by posting a cryptic teaser on X, hinting at a major October 7 reveal with turbine-like imagery. Many interpreted this as confirmation of Tesla's entry into the eVTOL market through Archer. Instead, Tesla unveiled more affordable Model 3 and Model Y variants, sending Archer shares down 8.6% on Tuesday.

Despite the Tesla disappointment, Archer continues making tangible progress. The company has secured United Airlines as a partner and will serve as the exclusive air taxi provider for the 2028 Los Angeles Olympics. FAA certification efforts remain ongoing.