Overview
- Joby announced about $1.2 billion of common stock and convertible note financing in late January, a move that triggered a sharp selloff in its shares.
- The stock trades near $9 and is down more than 30% year-to-date while the company carries a market capitalization close to $9 billion.
- Joby has shown test flights in New York City and Dubai and says it expects to begin U.S. operations this year, but federal certification is still pending.
- The eVTOL business is capital intensive and Joby remains unprofitable, so its continued need for cash raises the risk of dilution for current shareholders.
- Investors are watching FAA certification and the company’s first commercial U.S. flights as the most likely catalyst for a stock rebound and a test of Joby’s lead over smaller rivals such as Archer.