NEW YORK, Jan 29, 2026, 07:16 EST — Premarket
Shares of Joby Aviation dropped almost 14% in premarket trading Thursday, following a sharp selloff late Wednesday after the electric air-taxi maker announced an upsized stock offering alongside a convertible bond deal. The stock last traded near $11.50, down from Wednesday’s close at $13.37. (MarketScreener)
This move counts because Joby continues to spend heavily before launching commercial service, and the size of the raise is enough to shift near-term supply and demand dynamics for the stock. Selling equity at a discount often pressures shares by boosting the number investors must digest.
Traders also keep an eye on a mechanical element in these deals. Convertible notes start as debt but can convert to stock down the line, and buyers frequently hedge by shorting shares, which can weigh on pricing and settlement.
Joby priced $600 million of common stock at $11.35 a share, alongside $600 million of 0.75% convertible senior notes due 2032. That boosts total gross proceeds to roughly $1.2 billion, up from the $1.0 billion it announced just a day earlier. Morgan Stanley is also handling a “delta offering” of about 5.29 million borrowed shares at the same $11.35 price, designed to help investors hedge. Joby clarified it won’t receive any proceeds from the borrowed-share sale. (Joby Aviation, Inc.)
The notes will carry a 0.75% interest rate and mature on Feb. 15, 2032, a company statement reported by Investing.com confirms. Investors can convert these notes at an initial price near $14.19 per share—above Wednesday’s closing price. Joby noted this conversion price implies roughly a 25% premium over the $11.35 delta-offering price. (Investing.com South Africa)
Joby also executed “capped call” transactions—an options strategy designed to limit dilution from conversions—set with an initial cap price of $22.70 per share, according to a Seeking Alpha release. The company plans to allocate roughly $55 million of the note proceeds toward this capped call, cautioning that related hedging activity could cause volatility in the stock price around the deal. (Seeking Alpha)
Shares had already slid in extended trading Wednesday after Joby revealed its capital raise plan. According to a Reuters report shared on TradingView, the stock dropped roughly 12.3% after hours, hitting $11.73 following the news. (TradingView)
Joby previously stated it plans to use the proceeds to cover costs for aircraft certification, manufacturing, and gearing up for commercial operations. The remainder will go toward general corporate purposes. The company clarified that the stock and note offerings are independent of each other, though the delta offering and the note sale are linked and contingent on one another. (Joby Aviation, Inc.)
This is a well-worn pattern for investors in the electric vertical takeoff and landing (eVTOL) sector — emerging developers hitting the markets to bankroll lengthy engineering, certification, and production phases. The real issue isn’t just how much Joby raises now, but how far that money stretches before they need to raise again.
The downside is clear: issuing more shares now, combined with hedging activity, could keep the stock stuck or drive it down—even if the company’s fundamentals stay steady. Joby cautioned in its prospectus supplement that significant share sales and short selling linked to convertible-note hedging might weigh on its common stock price. (SEC)
Traders will be eyeing whether JOBY holds around the $11.35 deal price when regular trading starts, and how much of the underwriters’ extra-allotment options get snapped up. Joby confirmed the offerings are set to settle on Feb. 2, pending usual closing conditions. (Barchart)
