New York, Jan 30, 2026, 14:49 EST — Regular session
- Joby shares dropped roughly 5% after investors digested the news of a newly priced stock sale alongside a convertible note deal.
- The offering prices landed below the previous close, a move that typically weighs on high-cash-burn growth stocks.
- Monday’s expected settlement has traders focused on whether deal sizes will shift once more.
Shares of Joby Aviation dropped 4.8% to $10.61 in Friday afternoon trading, as the electric air-taxi company announced plans to raise new capital, pushing the stock further down.
The company announced it priced an upsized offering of shares and convertible notes aiming to raise around $1.2 billion in gross proceeds, excluding any underwriter options. Joby said the funds will support aircraft certification, manufacturing, and commercial launch preparations, with about $55 million earmarked for “capped call” hedges designed to limit dilution if the notes convert to stock. Joby Aviation, Inc.
A prospectus filed with the U.S. Securities and Exchange Commission reveals a primary offering of 52.86 million new shares priced at $11.35 each. Underwriters also have an option to purchase an additional 7.93 million shares. The filing notes the stock was trading at $13.37 on Jan. 28, meaning the offering is set about 15% below that level.
A separate prospectus revealed Joby is offering $600 million in 0.75% convertible senior notes due 2032, with underwriters able to buy an additional $90 million. The filing put the initial conversion price around $14.19 per share and said Joby plans to deliver the notes via The Depository Trust Company on Feb. 2.
Joby announced the two fundraisers late Wednesday, noting each would proceed independently and depend on market conditions.
Convertible notes represent debt investors can convert into shares down the line, typically at a fixed price. Companies use capped calls—options hedges—to limit dilution to a certain cap. Meanwhile, a “delta” share sale is a common tactic for note buyers and banks to hedge against price fluctuations, often triggering short-term selling pressure.
Rival eVTOL makers slipped on Friday, with Archer Aviation falling 1.7% and Vertical Aerospace also down 1.7%. The sector remains under strain as investors assess ongoing funding challenges.
The offering structure isn’t all upside for shareholders. The discounted price can weigh on the stock in the short run, while hedging linked to convertible deals might boost daily volatility. Should the stock slide more, investors could begin speculating on the shape of the next financing round.
Traders are zeroed in on whether the stock and note offerings will close Monday, Feb. 2, and if underwriters decide to exercise their options to boost the deal size afterward.
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