As per the report from Culper Research dated May 20, Archer Aviation Inc. (NYSE:ACHR) has been facing allegations of misleading investors regarding the progress of its eVTOL aircraft, Midnight.

The research firm had gone ahead with its short position on the company's stock, mentioning that it had consistently given inaccurate updates regarding its aircraft’s development and testing milestones over the previous year. As per the research firm, Archer Aviation Inc. (NYSE:ACHR)’s continued promotion of near-term commercialization is premature and also reckless.Culper Research Shorts Archer Aviation (ACHR) Stock- Here’s Why

A technician assembling an electric aircraft, highlighting the company's manufacturing capabilities.

The research firm explained the series of events that led to the short position. On February 27, 2025, Archer Aviation Inc. (NYSE:ACHR) mentioned that its manned Midnight aircraft was “fully assembled” and that it is “finishing up ground tests.” However, the research firm mentioned about the emails that were exchanged between the company’s own flight test team and the City of Salinas Fire Department. They revealed that the company’s flight test team didn’t even have the aircraft in their possession until early March.

Culper Research also believes that Archer Aviation Inc. (NYSE:ACHR) faked a milestone to unlock an additional tranche of financing from Stellantis. The firm went on to mention that the company’s progress in FAA certification has been slow. The company designs and develops aircraft and related technologies and services.

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