Jimmy Fallon Offered $1 Million Air-Taxi Bet by Short Seller
Air taxi company Archer Aviation Inc. has been targeted by short sellers before, but the latest attack has an unusual twist: A proposed $1 million "friendly wager" with the TV show host Jimmy Fallon.
New York-based Culper Research alleges that Archer has "systematically lied" about the progress of its flagship vehicle and paid millions to secure its CEO a May 15 appearance on The Tonight Show with Fallon, who a month earlier also attended a promotional event for the company.
Now the short-selling firm wants the late-night star to demonstrate his conviction in the business.
Culper has proposed that it and Fallon place $1 million each in escrow. If Fallon, a pilot and three more passengers complete a US Federal Aviation Administration-compliant commercial flight in Midnight - Archer's electric-powered vertical takeoff and landing aircraft - before the end of the 2028 Olympics, Fallon would win the full amount. If the flight does not occur, Culper would win the money and donate it to charity.
The deadline has been chosen because Archer has been named the official air taxi provider of the Los Angeles 2028 Olympic and Paralympic Games.
The Tonight Show and representatives for Fallon did not immediately respond to multiple requests for comment regarding the proposed wager. Responding to the short report, an Archer spokesperson said by text message that Christian Lamarco, the founder of Culper, "has a reputation for 'shorting and distorting' various stocks" and that his claims are baseless. In an email, Lamarco declined to comment beyond the original research.
In its report, Culper said it had investigators camped at Archer test sites and that based on its evidence, the aircraft was "nowhere close to flying" - contrary to company claims. The firm is the latest short seller to take aim at Archer, with other notable attacks coming from Grizzly Research and Kerrisdale Capital. About 17% of the air-taxi developer's floating stock is currently sold short, according to data from S3 Partners.
Startups as well as giants like Boeing Co. have been racing to develop, and eventually mass produce, electric-powered air taxis that could speed up short-haul journeys and ease congestion. The still-developing industry has numerous high-profile fans including the likes of Cathie Wood, whose Ark Investment Management backs Archer along with other companies in the sector.
In addition to the recent appearance of Adam Goldstein, Archer's chief executive officer, on The Tonight Show, an Instagram video featuring Fallon and Goldstein was posted from their, as well as Archer's, accounts on April 23. The video includes footage from a mid-April event in New York showcasing the Midnight aircraft.
Archer shares fell about 1.9% as of 2:56 p.m. in New York on Tuesday.
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