Culper Claims Archer Misled Investors on eVTOL
Culper Research, founded by Christian Lamarco, alleges that Archer Aviation systematically misled investors about the development progress of its eVTOL aircraft, Midnight. In a report published on May 20, 2025, the research firm accused Archer of overstating its readiness for commercial service and criticized the company’s promotional rhetoric as premature.
The 2025 report contends that Archer’s repeated assurances of near-term commercialization for the Midnight aircraft are reckless. According to Culper Research, Archer’s claims of completing reliable transition flights between vertical takeoff and forward-flight modes lack supporting evidence. Investigators for the short-selling firm highlight that Archer has not made any FAA-compliant transition footage available to the public, raising doubts about the vehicle’s technical maturity.
Archer Aviation swiftly dismissed the report as baseless. Speaking to Seeking Alpha, the company characterized Culper as a disreputable entity led by a known short seller. Archer accused Lamarco of distorting facts to profit from stock declines and pointed to the firm’s recent momentum, including high-profile media coverage, as proof that investor confidence remains intact.
Archer’s chief executive, Adam Goldstein, recently appeared on The Tonight Show with Jimmy Fallon to discuss the promise of air taxis and to unveil a partnership with the Los Angeles 2028 Olympics. Goldstein framed the sponsorship deal as a signal of FAA and industry confidence in Archer’s technology, but Culper countered on social media, arguing that an Olympic partnership does not guarantee regulatory approval or technical success.
Successful transition tests are essential for FAA Part 23 certification and pilot training. Industry observers note that without documented proof of these flights, eVTOL developers struggle to build credibility with regulators and customers. Archer has previously showcased hover-only demonstrations, but has yet to release footage of the Midnight prototype executing an FAA-compliant transition. Culper argues that such omissions undermine Archer’s narrative of imminent commercial operations.
To support its allegations, Culper says that investigators camped outside Archer’s testing facilities and monitored the company’s activity over an eight-day period. During that time, the team observed only a single round of low-speed taxi runs and no evidence of true flight operations. Culper claims that Archer’s pared-back testing schedule suggests significant delays in its development timeline.
The dispute has amplified scrutiny of Archer’s stock performance. Following the report, ACHR shares experienced heightened volatility as investors weighed the contrasting narratives. Some analysts warn that further delays in transition testing or negative regulatory developments could erode market confidence. Others maintain that Archer’s strategic partnerships and funding position the company to deliver on its promises once key milestones are met.
Looking ahead, Archer will need to provide transparent evidence of flight milestones to satisfy both the FAA and skeptical stakeholders. The company has indicated that additional test data and video documentation will be released in the coming weeks. As competition in the eVTOL sector intensifies, Archer and its critics will be watching closely to see whether Midnight can clear the hurdles necessary for commercial service in the years ahead.
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