Archer Aviation (ACHR) Accuses Joby of China Ties and Tariff Fraud in New Lawsuit

TLDR

• Archer Aviation launched a countersuit targeting Joby Aviation, claiming the company concealed extensive connections to Chinese manufacturers and accepted government funding from China
• The lawsuit alleges Joby labeled aircraft components weighing thousands of pounds as everyday items like socks and hair accessories to evade tariff payments
• Joby dismissed the accusations as “nonsensical” and suggested Archer’s own legal challenges prompted the filing
• The legal action coincided with the FAA’s announcement that both companies would participate in new electric vertical takeoff and landing aircraft programs
• Monday trading saw positive movement for both companies — Archer’s shares climbed more than 4% while Joby’s increased over 5%

The competition between Archer Aviation and Joby Aviation, two leading contenders in the electric air taxi industry, escalated into a full-blown courtroom confrontation this week.

On Monday, Archer submitted a countersuit in California federal court targeting Joby, alleging fraudulent practices, undisclosed Chinese business relationships, and obtaining unfair competitive advantages in an industry projected to reach $1 trillion in value by 2040.

According to the complaint, Joby has maintained a manufacturing facility in Shenzhen, China for over ten years. This Chinese operation purportedly benefited from technology development grants provided by the Chinese government.

Archer Aviation Inc., ACHR

Archer further alleges that Joby transported aircraft components from China to American soil while deliberately mislabeling shipments as everyday consumer products — describing thousands of pounds of parts as socks, napkins, and hair accessories. According to Archer, this scheme was designed to circumvent tariff payments and regulatory scrutiny.

Joby rejected the allegations forcefully. The company’s legal representative Alex Spiro characterized the claims as fabricated and stated the company “doesn’t respond to nonsense.”

The Legal Back-and-Forth

This countersuit represents Archer’s answer to litigation Joby initiated in November 2025. In that case, Joby alleged corporate espionage — asserting that Archer recruited a former Joby staff member who allegedly stole confidential documents containing business intelligence, partnership details, and aircraft technical specifications.

Archer rejected every allegation and submitted a motion seeking dismissal of Joby’s lawsuit.

Archer is currently requesting monetary compensation from the court and seeking Joby‘s exclusion from government-sponsored programs. The company contends Joby falsely presented itself as an “American-made” enterprise while concealing foreign operational dependencies.

The legal filing additionally asserts that Joby removed content from its website to eliminate proof of its Chinese subsidiary and obscured connections to a battery manufacturer allegedly linked to the Chinese Communist Party.

Federal Programs and Stock Movement

The lawsuit’s timing is noteworthy. Archer filed on the identical day the U.S. Department of Transportation revealed eight new funding initiatives designed to advance air taxi and unmanned aircraft development. Both Archer and Joby were designated as participants in three of these eight initiatives.

The FAA simultaneously confirmed both companies would join new eVTOL demonstration projects, encompassing passenger transport in Manhattan, regional aviation in Texas, and freight delivery in Florida.

Archer seeks Joby’s complete removal from these opportunities.

Both enterprises completed their public listings in 2021 via SPAC transactions. Joby maintains contractual relationships with the U.S. Air Force. In February 2026, Joby revealed intentions to initiate commercial operations in Dubai, enabling passengers to reserve flights through the Uber platform.

Archer has established a partnership with a South Florida real-estate developer for an air taxi network and secured designation as the exclusive air taxi provider for the 2028 Los Angeles Olympics.

During Monday’s trading session, Archer shares advanced more than 4% while Joby shares gained more than 5%.

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