Archer Aviation (NYSE: ACHR) stock slipped lower in this week's trading. The flying electric vehicle (EV) company's share price ended the period down 14.3% from last Friday's market close, according to data from S&P Global Market Intelligence.
Meanwhile, the S&P 500 index fell 2.1%, and the more growth-weighted Nasdaq Composite index retreated roughly 3.4% across the stretch. Uneven performance in earnings season and new economic data caused many growth stocks to get hit hard this week, and Archer was an outsized participant in the pullback. But there was actually some good news for the company.
Archer Aviation investors had a lot to think about this week
Archer stock lost altitude this week amid a variety of bearish catalysts. High-profile earnings reports from companies including Amazon, Microsoft, and Intel didn't thrill Wall Street, and the results have had a spillover effect on the broader market. Investors are also weighing some recent warning signs for the U.S. economy.
Wednesday's Federal Reserve meeting signaled that the long-awaited pivot to interest rate cuts will begin in September, but new concerns quickly arose. Thursday arrived with data showing an unexpected increase in jobless claims, and the U.S. Labor Department published additional data the following day showing that jobs growth for July had slowed substantially.
Investors are worried that the risk of recession may have increased, and Archer's share price has pulled back in response. As a company that's still in a pre-revenue state, the company's valuation is highly speculative. In addition to generally making investors more cautious, a recession could significantly slow the rate at which Archer is able to land partners and customers in the public and private sectors.
But there was some good news
While Archer stock did suffer a double-digit sell-off this week, the pullback was likely mitigated by some good news for the flying EV specialist. On Wednesday, the company showcased its Midnight vehicle in Atlanta and also confirmed that construction of its manufacturing facility in Covington, Georgia, is on track to be completed this year.
Archer says that the nearly 400,000-square-foot facility will allow it to produce 650 Midnight aircraft annually. While the company's outlook remains highly speculative, it's encouraging to see that vehicle production is poised to take big steps in the near future.
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