Archer Aviation Inc. (ACHR) saw its stock plummet by 10.54% during Wednesday's trading session, extending its losses from the previous day. The significant drop comes in the wake of Tesla's highly anticipated announcement, which failed to meet the speculative expectations of electric vertical takeoff and landing (eVTOL) aircraft investors.

The decline in Archer's stock price can be attributed to a combination of factors. First, Tesla's announcement on Tuesday turned out to be solely focused on new versions of its Model Y and Model 3 vehicles, with no mention of any aviation-related ventures. This revelation disappointed investors who had speculated that Tesla might enter the eVTOL market, potentially through a partnership with companies like Archer or its competitor Joby Aviation.

Adding to the downward pressure, Archer's stock had experienced a significant run-up earlier in the week, rising 18% on Monday due to speculation surrounding Tesla's announcement. The subsequent disappointment led to a sharp correction, with Archer shares falling 8.5% on Tuesday and continuing their descent on Wednesday. This volatility underscores the speculative nature of investments in the nascent eVTOL industry, where companies like Archer are still awaiting regulatory approvals and have yet to generate significant sales.