Joby Shares Plunge 23.9% as Archer Countersues Over Chinese Parts Misclassification
Archer Aviation’s stock has fallen 13.3% and Joby Aviation’s shares are down 23.9% after Archer sued Joby for misclassifying thousands of pounds of Chinese-origin materials to dodge tariffs and conceal Chinese government support. The dispute heightens reputational risk as both firms vie for U.S. air-taxi grants and FAA certification.
1. Countersuit Allegations
In its countersuit filed this week, Archer Aviation accuses Joby of misclassifying thousands of pounds of Chinese-origin aircraft materials as consumer goods to avoid tariffs and hide ties to the Chinese government. Archer alleges these actions defrauded the U.S. government by securing grants under false pretenses.
2. Legal Battle Escalation
The countersuit responds to Joby’s earlier lawsuit claiming Archer stole trade secrets via a former employee. Each firm dismisses the other’s claims as baseless, intensifying regulatory and reputational risks in the high-stakes eVTOL sector.
3. Federal Grants and Certification Race
Both companies are participants in eight U.S. Department of Transportation air-taxi grant programs. They are also racing toward FAA type certification, with Joby targeting operations in 10 states in 2026 and Archer achieving full acceptance of compliance means for its Midnight aircraft.
4. Market Reaction
Archer’s shares have fallen 13.3% over the past week, while Joby’s stock is down 23.9% year-to-date. Both stocks saw modest pre-market gains following the grant program announcement, but investor concerns remain elevated.