Why Joby Aviation Shares Are Sliding Today

Joby Aviation (NYSE:JOBY) experienced a sharp decline in premarket trading on October 8, 2025, following the company’s announcement of a substantial stock offering. The electric air taxi developer’s shares fell to $16.95 in premarket trading at 5:47:32 AM EDT, representing a 10.39% drop from the previous close of $18.91.

This decline came on the heels of a 3.37% decrease during regular trading hours on October 7, when the company first revealed its plans to raise capital through an underwritten offering.

Joby’s $514 Million Offering Aims to Fund Certification and Commercial Launch

On October 7, 2025, Joby Aviation announced the pricing of its underwritten common stock offering at $16.85 per share. The company plans to sell 30,500,000 shares, generating approximately $513.9 million in gross proceeds. Morgan Stanley is serving as the book-running manager for the offering, which is expected to close on October 9, 2025, subject to customary closing conditions. Additionally, Joby has granted underwriters a 30-day option to purchase up to an additional 4,575,000 shares at the offering price.

The company stated it intends to use the net proceeds, combined with existing cash, cash equivalents, and short-term investments, to fund its certification and manufacturing efforts, prepare for commercial operations, and support general working capital and corporate purposes.

This capital raise comes as Joby continues developing its electric vertical takeoff and landing (eVTOL) aircraft for commercial passenger service, with plans to launch air taxi operations in the United Arab Emirates by 2027.

JOBY Stock Slides as Investors Weigh Equity Dilution Risks

The significant stock offering triggered immediate concerns among investors about potential dilution of existing stockholders’ equity. Following the announcement, JOBY shares declined 6.1% in afterhours trading on Tuesday, and the premarket session on October 8 saw further deterioration with shares dropping over 10%.

The sharp decline reflects the market’s typical negative reaction to substantial equity offerings, particularly when they represent a meaningful percentage of a company’s outstanding shares.

Despite the recent selloff, Joby’s stock has shown remarkable strength over longer timeframes, with year-to-date returns of 132.60% and one-year returns of 216.22% as of October 7, 2025. The company’s market capitalization stood at approximately $16.187 billion before the premarket decline.

However, analyst price targets suggest caution, with an average target of $10.83—significantly below the current trading price—ranging from a low of $6.00 to a high of $22.00. The company continues to operate at a loss, with a diluted EPS of -$1.07 and no profitability on the horizon based on current metrics.

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