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Archer Aviation (ACHR) is down 13.3% over the past week and Joby Aviation (JOBY) is down 23.94% year-to-date. Archer’s countersuit accuses Joby of defrauding the U.S. government by misclassifying Chinese aircraft materials and concealing foreign government ties while both compete for federal grants and commercial certification.
A legal war between the two leading publicly traded eVTOL companies escalated sharply this week, adding a new layer of regulatory and reputational risk to an already high-stakes sector race.
Archer Aviation filed a countersuit accusing rival Joby Aviation of defrauding the U.S. government and concealing ties to China. Archer alleged that Joby and its agents fraudulently misclassified thousands of pounds of Chinese-origin aircraft materials as consumer goods to avoid tariffs and foreign-influence scrutiny. Archer also alleged that Joby received grants and financial support from the Chinese government, creating a “profound, undisclosed foreign dependency,” while portraying itself as an American firm.
The countersuit is a response to Joby’s November lawsuit accusing Archer of stealing trade secrets through a former employee who allegedly took confidential information about business strategies, partnerships, and aircraft specifications. Joby attorney Alex Spiro dismissed the countersuit claims as “nonsense.”
The timing sharpens the stakes. The countersuit was filed the same day the U.S. Department of Transportation announced eight grant programs to accelerate air taxi development, three of which list both Joby and Archer as participants. Both companies are racing toward FAA type certification and commercial launch, with Joby Aviation (NYSE:JOBY) targeting early operations in 10 U.S. states in 2026 and Archer Aviation (NYSE:ACHR) having achieved 100% FAA acceptance of all means of compliance for its Midnight aircraft.
Both stocks have been under pressure. ACHR has fallen 13.3% over the past week, while JOBY is down 23.94% year-to-date, however both are up on the pre-market.
Federal grant participation for both companies could face scrutiny if China-supply-chain allegations gain traction with regulators, given that both companies depend on government support to reach commercial viability.
