Archer Aviation Inc. (NYSE: ACHR) stock is down over 7% in midday trading as the market sell-off enters its third day. One catalyst for the move appears to be Archer’s recent announcement that it had secured $301.8 million in additional funding as the company advances its electric vertical take-off and landing (eVTOL) platform, Midnight.
The company has begun building its initial fleet of Midnight air taxis to be used in testing with the Federal Aviation Administration (FAA). Archer announced the capital raise on February 13. At the time, MarketBeat’s Thomas Hughes noted that “the cash injection came at a cost of 35.5 million shares.” This kind of dilution is not uncommon with a pre-revenue company like Archer, but it does limit the upside for market bulls.
