Grizzly Research is shorting electric vertical take-off and landing (eVTOL) aircraft developer Archer Aviation Inc. (NYSE:ACHR), as the firm believes competitor Joby Aviation Inc. (NYSE: JOBY) is a better bet in the eVTOL space.
What To Know: Grizzly Research on Wednesday issued a bearish report on Archer Aviation, calling the company “the Nikola of the skies.”
The short seller argued Archer has built a strong reputation in the eVTOL space through misleading projections and press releases, which it believes is reminiscent of what Nikola did a few years ago.
Benzinga has reached out to Archer Aviation for comment on the report.
After conducting analysis with eVTOL engineers, Grizzly believes Archer’s Midnight aircraft is “fundamentally flawed and likely uncertifiable.”
Archer said earlier this month that it had six Midnight aircraft in production, including three in final assembly. The company recently delivered its first Midnight aircraft to the UAE and commenced its flight test program in Abu Dhabi. Archer said it expects initial commercial payments later this year, but Grizzly is skeptical of the company’s progress.
“Site visits to Archer's ‘state-of-the-art’ Covington, Georgia manufacturing facility in June, July and August 2025 showed little to no production activity. This comes despite claims of current production along with current scaling to production of 50 aircraft per year and a final goal of 650 aircraft per year with support from Stellantis,” the short seller wrote in the report.
Furthermore, Grizzly alleged that Archer’s $6 billion order book is being inflated by fraudulent commitments, including Air Chateau’s MoU for 100 aircraft, which lacks the scale or funding for a fleet of that size, according to the short seller.
Grizzly also highlighted a deal with Future Flight Global that is tied to a shell company with no operations and KakaoMobility’s commitment, which did not meet the deadline but is still reportedly included in the company’s backlog.
Finally, Grizzly alleged that Archer’s “Launch Edition” aircraft was “nothing more than a staged hover” and said the company’s recent pivot to serve the defense industry is a “desperate attempt” to stay relevant in the eVTOL space.
Meanwhile, Joby has made impressive progress “on all fronts.”
“Joby's methodical, engineering-first approach has positioned it to deliver a high-quality, mission-ready product well ahead of Archer,” Grizzly wrote in the report on Wednesday.
ACHR Price Action: Archer Aviation shares were down 1.14% at $9.16 at the time of publication on Wednesday, according to Benzinga Pro.
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