Playing “how low can you go?” is fun at a limbo contest but not in the stock market. But that’s what shares of electric vertical takeoff and landing (eVTOL) company Archer Aviation (ACHR +3.45%) have been doing over the past year. They’ve tumbled from a high of over $13 per share to just $6.31per share today.

While that 53.5% decline isn’t quite as steep as rival Joby Aviation‘s (JOBY -0.66%) 62.5% share price plunge, it’s still one of the worst performances in the aviation industry.

That kind of stock price drop has sometimes prompted companies to reverse-split their stocks. Could such a reverse split be in the cards for Archer? Here’s what investors should know.

Image source: Archer Aviation.

Why companies perform reverse splits

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