Archer Aviation Shares Drop 11% Post-Q3 Results and Hawthorne Airport Deal

Archer Aviation's stock (ACHR) tumbled 11% in pre-market trading following its third-quarter earnings report and the announcement of a $126 million acquisition of Hawthorne Airport in Los Angeles. The eVTOL aircraft developer plans to use the airport as a hub for its LA air taxi network and a testing site for aviation technology.

Despite reporting a narrower-than-expected loss per share of $0.20 (versus consensus estimates of $0.30), investor concerns over potential shareholder dilution emerged after the company revealed $650 million in new equity capital. Adjusted EBITDA losses widened to $116.1 million from $93.5 million year-over-year as operating expenses climbed.

The funding round brings Archer's total liquidity above $2 billion, positioning the company for continued development of its urban air mobility ecosystem. Market reaction suggests skepticism about the capital-intensive expansion strategy in a sector where profitability timelines remain uncertain.