Joby Aviation Stock Plummets 9% Following $1.2 Billion Capital Raise Announcement
Joby Aviation's shares tumbled 9.1% in premarket trading after unveiling plans to raise $1.2 billion through convertible bonds and stock offerings. The electric air taxi developer priced $600 million in convertible notes at 0.75% interest and 52.8 million shares at $11.35 each—a discount to the current market price.
The capital infusion comes as Joby anticipates annual expenditures of $500 million while pursuing aircraft certification in the Middle East by mid-2026 and U.S. approval by late 2026. Convertible notes carry a 2032 maturity with a $14.19 conversion price, representing a 25% premium to the offering.
Analysts remain cautious despite projections of $1.2 billion annual sales by 2029, with only 18% recommending the stock as a Buy. The expanded fundraising—surpassing initial $1 billion targets—reflects the capital-intensive nature of aerospace innovation.
