Despite strong cash reserves, Archer faces rising losses and increasing investor skepticism.
- ARK sold about 2.2 million Archer Aviation shares worth over $12.3 million.
- Cathie Wood has been steadily reducing ARK’s stake in the electric air taxi company across its ETFs.
- Archer Aviation shares have fallen more than 23% this year as investors worry about certification delays.
Cathie Wood’s ARK Invest has reduced its exposure to Archer Aviation (ACHR) across several of its flagship exchange-traded funds as investors reassess the pace of commercialization in the electric air taxi industry.
ARK Sells ACHR Shares
Wood disposed of about 2.2 million ACHR shares across the ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space Exploration & Innovation ETF (ARKX), representing a combined worth over $12.3 million.
The latest reduction was not an isolated move. ARK has been steadily lowering its position in Archer Aviation in recent sessions, reducing the electric air taxi developer's weighting in ARK-managed funds.
Archer Aviation's shares have plunged over 23% this year, reflecting concerns about regulatory progress, financial losses, and the timeline for generating meaningful revenue.
After enthusiasm surrounding the emerging eVTOL sector drove valuations higher in previous years, investors have become increasingly focused on execution. Archer remains one of the industry's best-capitalized companies, but growing losses and ongoing certification requirements have weighed on sentiment.
Archer Aviation stock rose 0.5% in Tuesday’s premarket.
ACHR’s Strong Liquidity, Limited Revenue
Archer entered 2026 with a substantial cash position of roughly $1.78 billion, providing the company with resources to continue development and manufacturing efforts.
However, during the first-quarter (Q1), Archer generated $1.6 million in revenue, showing a small increase from the previous quarter as activity grew at its Los Angeles airport facility.
At the same time, spending increased due to greater investment in aircraft development, testing and regulatory approval efforts, resulting in a net loss of $217.7 million, wider than in prior periods.
Investors are closely watching Archer's progress with the Federal Aviation Administration (FAA). While the company has completed several important certification steps for its Midnight aircraft. However, it must still clear additional testing and regulatory approvals before beginning commercial passenger service.
What Are ACHR Retail Traders Saying
On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory with 562% surge in message volume over the last 24 hours.
A user said, I would like to see more communication from the team and more clarity around Archer’s actual progress.”
Another user said, “You know what could accelerate the advertising campaign? Havine an eVTOL that could actually eVTOL with a pilot, let alone a pilot and 3 passengers. If you do not realize how slow their progress is, you are missing the fact that 2028 Olympics is almost out of the question.”
ACHR stock has plunged over 49% year-to-date.
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