Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell
The post Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell appeared on BitcoinEthereumNews.com.
TLDR Joby Aviation (JOBY) shares fell 9.1% in premarket trading after the company announced a larger-than-expected $1.2 billion capital raise. The company is selling $600 million in convertible notes with 0.75% interest and $600 million in stock at $11.35 per share. Proceeds will fund certification efforts targeting mid-2026 for the Middle East and late 2026 for the U.S. The convertible notes convert at $14.19 per share, a 25% premium, with capped call transactions at $22.70 to limit dilution. Analysts forecast $1.2 billion in sales by 2029, but only 18% recommend buying the stock. Joby Aviation shares took a hit Thursday morning after the electric vertical takeoff and landing aircraft developer unveiled a capital raise larger than expected. Joby Aviation, Inc., JOBY The stock fell 9.1% to $12.15 in premarket action. Joby had closed Wednesday’s session at $13.37. The company announced it would raise $1.2 billion through two separate offerings. This surpassed its initial $1 billion target. The funding comes as no surprise to investors familiar with Joby’s cash needs. The company burns roughly $500 million each year as it develops its electric air taxi business. The Deal Breakdown Joby structured the raise in two parts. The first involves $600 million in convertible senior notes maturing in 2032. These notes carry a 0.75% interest rate paid twice yearly. The conversion price was set at $14.19 per share. That conversion price represents a 25% premium over the stock’s offering price. It gives noteholders upside if shares rally above that level. The second portion includes $600 million in common stock. Joby priced these shares at $11.35 each, below the current market price. The company will issue 52.8 million shares at this price. Morgan Stanley is also offering 5.3 million borrowed shares for hedging purposes. Both offerings close on February 2, 2026. Underwriters have…
Filed under: News - @ January 29, 2026 5:26 pm