Archer Aviation‘s stock plummeted 12% after a share sale overshadowed a narrower-than-expected third-quarter loss.

The company posted a net loss $129.9 million, narrower than the FactSet estimate of a $178.6 million loss.

However, Archer disclosed a $650 million stock offering for 81.25 million shares to support its $126 million acquisition of Hawthorne Airport in Los Angeles as a hub for air taxi operations there. Archer was chosen as the official air taxi provider for the 2028 Olympics in Los Angeles.

The move would dilute the value of the stock for existing shareholders. The weighted average for Archer shares outstanding has grown to about 660.9 million from 397.5 million a year ago.

Interest in electric aircraft makers has picked up in recent months as major players have edged closer to certification. Earlier this week, Beta Technologies went public on the NYSE.

Archer, like its competitors, is taking major steps toward achieving Federal Aviation Administration certification, a key approval needed to fly commercially.

In September, Archer said its Midnight aircraft reached a record altitude of 7,000 feet. The milestone came about a month after the company achieved its longest piloted flight.

Archer has bet big on building and deploying air taxis in the United Arab Emirates as competitor Joby Aviation teams up with Saudi Arabia.

For the current quarter, Archer said it expects a loss between $110 million and $140 million for adjusted earnings before interest, taxes, depreciation and amortization, a loss of $125 million at the midpoint. Analysts expected a loss of $119.9 million, according to FactSet.

Earlier this week, Joby Aviation reported a wider-than-expected third-quarter loss. Shares have slumped 20% over the last week, while Archer has lost nearly a third of its value. Both companies have more than doubled in value over the last year.