This article first appeared on GuruFocus.
Oct 7 – Archer Aviation (NYSE:ACHR) climbed into double-digit gains around 18% on Monday as traders speculated the eVTOL maker is tied to Tesla’s (TSLA) highly watched announcement.
Over the weekend, Tesla teased a special event with short videos on X, one showed a spinning Tesla logo with 10/7 and another displayed headlights in the dark, and investors began connecting dots to electric aircraft.
The buzz drove Archer to its highest level since July, with the stock up about 16% on Monday and 40% over the past five days. Company spokespeople have not announced any tie to Tesla, and public filings contain no confirmation.
Still, the market reaction shows how quickly speculation can amplify small social-media signals. Analysts and investors should weigh that sentiment against fundamentals: Archer remains an early-stage manufacturer pursuing regulatory approvals and commercial launches before producing steady revenue.
To merchants, the action will present opportunity and peril, gains won already due by one half to rumor and by the other to fallacy are lost just as quickly. Keep an eye on the radio on October 7 to get the real information about Tesla, at least until the date. The rally of Archer is based on an unproven connection and the excitement of the investors, instead of proven strategic news.