Key Stats for $JOBY Stock
- Price Change for $JOBY stock: -8%
- Current Share Price: $17
- 52-Week High: $21
- $JOBY Stock Price Target: $11
What Happened?
Joby Aviation (JOBY) stock plunged 8% on Wednesday after the company announced pricing for a common stock offering. Joby will sell 30.5 million shares at $16.85 each, raising roughly $513.9 million in gross proceeds.
Joby said it plans to use the money to fund commercial operations, certification and manufacturing efforts, as well as general corporate purposes.
The JOBY stock decline is a typical market reaction to dilution. When companies issue new shares, the existing shareholders’ ownership percentage of the business decreases.
The 30.5 million shares represent meaningful dilution for JOBY stock, which currently has around 800 million shares outstanding.
The timing comes as Joby prepares to launch its air taxi service in the U.S. next year. The company has been aggressively expanding its manufacturing capacity and clearing regulatory hurdles to bring electric vertical takeoff and landing aircraft to market.
Recent milestones include successful public flight demonstrations at the World Expo in Osaka, Japan, in partnership with ANA Holdings. Over 13 days, Joby conducted more than 20 flights showcasing its quiet, all-electric aircraft to crowds of up to 200,000 daily visitors.
Joby also announced partnerships to launch air taxi services in Ras Al Khaimah, UAE by 2027. It is collaborating with local authorities and its infrastructure partner, Skyports, to develop a vertiport network. In Dubai, Joby plans to carry its first passengers in 2026.
Joby recently acquired Blade’s passenger helicopter business and plans to integrate those services into the Uber app as soon as next year. Blade flew more than 50,000 passengers in 2024 across routes in New York and Southern Europe.
On the manufacturing side, Joby launched production at its remodeled facility in Dayton, Ohio, and plans to double capacity at its hub in Marina, California, to 24 aircraft annually.
Joby also demonstrated its Superpilot autonomous flight technology for the U.S. Air Force, logging over 7,000 miles of autonomous operations across more than 40 flight hours. The Department of Defense requested $9.4 billion in its 2026 budget for autonomous aircraft programs.
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What the Market Is Telling Us About JOBY Stock
Despite the 8% drop in JOBY stock, it has more than tripled over the last 12 months.
Joby needs capital to scale manufacturing and launch commercial operations. The company is still pre-revenue and is burning cash to certify its aircraft and build out infrastructure.
Raising $514 million now gives Joby the runway to execute on its 2026 launch plans without worrying about running out of money.
The offer price of $16.85 represents a modest discount to where the stock was trading before the announcement. That suggests investment banks and institutional buyers see value at these levels despite the dilution.
Most importantly, Joby is advancing through FAA certification more quickly than its competitors. The company is in the fourth of five stages and expects to fly its first FAA-conforming aircraft this year.
Joby’s participation in the White House eVTOL Integration Pilot Program also matters. The program allows mature aircraft designs to begin operations before full certification. With over 40,000 miles of flight testing completed, Joby has the operational readiness to participate.
The company’s vertical integration strategy, backed by Toyota, positions it well for scale manufacturing.
The Dayton facility will eventually produce up to 500 aircraft annually with help from Toyota engineers. That kind of production capacity would make Joby the dominant player in the eVTOL market.
For now, the market is punishing JOBY stock for the immediate dilution while overlooking the progress toward commercialization.
Investors need to decide if they’re comfortable holding through near-term volatility and dilution as Joby works toward its 2026 launch target.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!