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Archer Rebuts Short Seller, Points to Strong Q1 & Global Momentum 
A recent report from short-seller Culper Research on May 20, 2025, cast a shadow over Archer Aviation (NYSE: ACHR), triggering a downturn in the electric vertical takeoff and landing (eVTOL) aircraft developer's stock price. However, Archer Aviation swiftly refuted the allegations, labeling them "baseless" and questioning the research firm's credibility. This development arrives at a dynamic time for Archer, a period marked by significant operational advancements and positive financial disclosures. Rather than being derailed, the company is leaning on its fundamental progress, including a strong first-quarter 2025 earnings report, key international partnerships, and continued advancements in its aircraft program, to counter the short seller's narrative. For investors, this situation necessitates a careful examination of the claims versus the company's verifiable achievements and ongoing strategic execution. Archer in the Crosshairs Culper Research's May 20th report leveled serious accusations against Archer Aviation, primarily alleging that the company has "systematically misled, deceived, or outright lied" to investors concerning crucial milestones in the development and testing of its flagship Midnight eVTOL aircraft. The short-seller's thesis hinges on claims that Archer's portrayal of its progress towards near-term commercialization is not only premature but also "reckless." Among the specific allegations detailed by Culper are contentions that Archer misrepresented the timeline for its aircraft assembly and ground testing, citing purported internal communications. The report also challenges the validity of Archer's June 2024 "transition flight," claiming it was not compliant with FAA definitions and was designed to unlock funding. It further asserts that Archer concealed significant design flaws and subsequent overhauls of the Midnight aircraft. Additionally, Culper Research questioned the nature of high-profile promotional activities, such as CEO Adam Goldstein's appearance on "The Tonight Show" with Jimmy Fallon and the LA28 Olympics partnership, suggesting these were costly paid endorsements rather than organic recognitions of progress. As a notable tactic accompanying their report, Culper Research publicly extended a $1 million wager to Jimmy Fallon, challenging him to take an FAA-compliant commercial flight in an Archer Midnight by July 2028. In response to these multifaceted allegations, Archer Aviation has firmly stated that Culper Research is "not a credible research institution" and that all claims made in the report are "baseless," attributing the timing of the report to the company's recent positive momentum. Archer's Financial Health Stands Firm Despite the controversy stirred by the report, Archer’s latest financial results paint a more stable and optimistic picture of the company’s trajectory. Archer Aviation's Q1 2025 earnings surpassed expectations with an earnings per share (EPS) of -$0.17 against a -$0.28 estimate, and its net loss significantly improved to $93.4 million. Their balance sheet strengthened with cash and equivalents reaching $1.03 billion, up from $834.5 million in Q4 2024, primarily due to financing. Q1 operating expenses were $144.0 million, a planned increase for scaling. Archer projects a Q2 2025 adjusted EBITDA loss of $100–120 million, reflecting its ongoing investment in the eVTOL sector. Their strong liquidity, exceeding $1 billion, supports certification and commercialization plans. As you may recall, Biden and the Fed were working on a central bank digital currency, or CBDC.
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