Shares of Archer Aviation Inc. (ACHR) plummeted 17.51% in Friday's intraday trading session, as investors reacted to a series of announcements that raised concerns about the company's financial outlook and growth strategy. The electric air taxi developer's stock price tumbled following its third-quarter earnings report and strategic moves that have sparked a sell-off among traders.

The sharp decline comes after Archer reported its third-quarter results, where the company posted a loss per share of $0.20. However, more concerning to investors was the company's forecast for the fourth quarter, projecting an adjusted EBITDA loss between $110 million and $140 million. This substantial projected loss suggests that Archer's path to profitability may be longer and more challenging than previously anticipated, weighing heavily on investor sentiment.

Adding to the downward pressure, Archer announced a significant share offering, planning to sell 81.25 million shares of Class A common stock priced at $8.00 each, aiming to raise $650 million in gross proceeds. While this capital raise will bolster the company's balance sheet, it also implies potential dilution for existing shareholders. Furthermore, Archer revealed plans to acquire Hawthorne Airport in Los Angeles for $126 million, intended as a hub for its future air taxi network. The company anticipates using $171 million of the net proceeds from the share offering for this acquisition and planned redevelopment of the airport.

Compounding these factors, JPMorgan cut its target price for Archer Aviation from $10 to $8, reflecting lowered expectations for the company's near-term performance. This adjustment by a major financial institution likely contributed to the sell-off as investors reassessed their positions. As Archer navigates these financial and strategic challenges, the market will be closely watching for signs of progress in its efforts to commercialize electric vertical takeoff and landing (eVTOL) technology and achieve profitability in the competitive air taxi market.