New York, Jan 30, 2026, 09:12 EST — Premarket
Shares of Joby Aviation Inc (JOBY.N) were steady near $11.14 premarket on Friday, following a steep nearly 17% slide a day earlier. The electric air-taxi maker is raising new capital, which weighed on investor sentiment.
This move is significant since Joby is raising funds at a discount. The deal includes new shares and hedging activity linked to convertible bonds — a combination that can pressure the stock despite the added cash boosting the company’s runway.
The eVTOL (electric vertical take-off and landing) race continues to draw public market funding, even as certification and manufacturing costs burn through cash long before passenger fares start flowing in.
Joby priced an upsized financing package totaling more than $1 billion, consisting of $600 million in 0.75% convertible senior notes due 2032 and 52,863,437 common shares at $11.35 each. The deal surpassed the initial target the company had set. Settlement is planned for Feb. 2. Underwriters hold 30-day options to purchase an extra $90 million in notes and 7,929,515 shares, Joby said. (Joby Aviation, Inc.)
Convertible notes are bonds that can later turn into shares if specific conditions are met. A “capped call” is an options trade the issuer purchases to cap the dilution existing shareholders experience when those bonds convert, though it doesn’t eliminate dilution altogether.
The notes prospectus details a separate “delta offering” linked to the hedge trade: Morgan Stanley is offloading 5,286,343 borrowed shares to help certain note buyers manage risk. Joby won’t see any proceeds from these borrowed shares. The filing lists Joby’s last reported sale price at $13.37 on Jan. 28, which means the $11.35 equity price is roughly a 15% discount to that figure. (SEC)
Joby announced earlier this week that it intends to use the proceeds, combined with existing cash reserves, to advance certification and manufacturing efforts and gear up for commercial operations. The firm is working on an all-electric vertical take-off and landing aircraft designed for air-taxi services. (Jobyaviation)
Traders are fixated on the dilution math, not the coupon. Joby plans to issue tens of millions of shares, and convertible-arbitrage hedging could trigger selling at inconvenient moments.
The risk goes both ways. If certification or production delays occur, or capital markets tighten once more, the company might have to raise funds again — and each round tends to weigh heavier on the stock than the previous one.
The next key date is the Feb. 2 settlement for the offerings. What happens in the weeks after, with any exercise of the underwriters’ overallotment options, will decide the total new supply hitting the market.
