Archer Aviation Inc (NYSE:ACHR) shares are trading lower on Wednesday despite announcing a partnership with Cleveland Clinic Abu Dhabi to establish the UAE’s first hospital-based vertiport for electric vertical takeoff and landing (eVTOL) aircraft operations.
What’s To Know: Archer announced plans to develop a vertiport at Cleveland Clinic Abu Dhabi through the aviation authority’s framework allowing hybrid operations. The facility would enable electric air taxi service to the hospital for both routine passenger flights and urgent organ deliveries using Archer’s Midnight aircraft.
The deal builds on Archer’s Abu Dhabi network expansion after gaining approval for a dual-use vertiport at the city’s cruise terminal earlier this year. The company said it will convert the hospital’s current helicopter landing pad to handle both conventional helicopters and electric aircraft.
“This partnership showcases the breadth of Archer’s network vision — connecting not just places, but pillars of life in Abu Dhabi,” said Bryan Bernhard, chief growth and infrastructure officer at Archer.
Wednesday’s news may be being overshadowed by unmet investor expectations. Shares of Archer jumped on Monday amid social media buzz about a possible tie-up with Tesla Inc (NASDAQ:TSLA) after Archer posted a video showing its Midnight air taxi with a Tesla vehicle and Optimus robot. Speculation grew when Tesla’s X account shared a mysterious video featuring its logo on a spinning propeller, fueling chatter about a potential eVTOL announcement.
With no Tesla partnership emerging and the speculation proving unfounded, Archer shares are giving back gains from earlier this week. Archer shares may also be experiencing weakness on Wednesday as competitor Joby Aviation faces selling pressure on the back of a $513.9 million offering.
ACHR Price Action: Archer Aviation shares were down 1.30% at $12.32 at the time of publication on Wednesday, according to Benzinga Pro. The stock was well off its lows for the session around $10.95 at last check.
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Image: courtesy of Archer Aviation.
