Flying taxi rival Archer Aviation countersues Joby Aviation, claiming Santa Cruz company misled U.S. regulators and concealed ties to China

The rivalry between two electric air taxi companies is heating up in federal court. Archer Aviation has filed a countersuit against Santa Cruz-based Joby Aviation accusing the company of concealing extensive ties to China and misleading U.S. authorities.

The suit, filed in federal court in San Jose on Monday, comes in response to Joby Aviation’s claims that Archer Aviation committed corporate espionage and stole trade secrets. The two companies have emerged as two of the most prominent contenders in the race to launch commercial service of what are known as electric vertical takeoff and lift vehicles (eVTOL), essentially, electric helicopters designed to fly at high speeds. 

In the countersuit, Archer Aviation alleges that Joby has engaged in a “calculated, years-long scheme” to defraud the government, the public and its main competitor. Archer’s suit claims “Joby has falsely presented itself as a domestically rooted, American-made, fully vertically integrated aviation company while covertly relying on its Chinese manufacturing subsidiary, sourcing critical components from Chinese suppliers — including its own subsidiary — that have apparent Chinese Communist Party ties, and receiving through its Chinese subsidiary technology-development grants directly from the Chinese government.”

Archer’s suit further alleges that Joby and its agents fraudulently misclassified thousands of pounds of Chinese-origin aircraft materials as consumer items like “hair clips” or “socks” in an attempt to evade U.S. tariffs and regulations. It also accuses Joby of concealing the origin of imports, removing websites that document its ties to China and suppressing information “concerning Chinese supply dependency in order to gain advantage over Archer.”

In a statement provided to Lookout, Eric Lentell, Archer’s chief strategy and legal officer, said, “The United States is in a global race to lead the future of aviation. While Joby promotes a made-in-America, vertical integration narrative and benefits from U.S. taxpayer-backed programs, our filing lays out detailed allegations exposing Joby’s longstanding and extensive ties to China.”

Meanwhile, Joby has accused Archer and a former employee of stealing company secrets. In November, Joby filed charges accusing its former U.S. state and local policy lead of downloading confidential information from Joby before he left to take a position with Archer. Joby’s attorneys claim George Kivork took information to Archer that was then used to undercut a deal that Joby had previously made with a real estate developer. The suit was moved from Santa Cruz County Superior Court to U.S. District Court in San Jose, and Archer filed a motion to dismiss in January.

In response to Archer’s new claims, Alex Spiro, an attorney for Joby, said in a statement that the company “doesn’t respond to nonsense. Archer’s constant legal issues and flailing business operations have left it no choice but to resort to invented nonsensical theories.”

A court hearing for both cases is set for April 14.

Meanwhile, Joby and Archer also announced Monday that both companies have been selected as partners in several applications under the White House’s eVTOL integration pilot program. For Joby, that will enable the company to begin early operations this year in 10 states, including Arizona, Florida and New York. Company officials said this could accelerate Joby’s path to commercial service in the U.S. Joby officials plan to launch its first commercial service sometime this year in Dubai while it works to complete the necessary steps to receive federal certification in the U.S.

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