TLDR:
- Joby Aviation announced a $200 million secondary stock offering at $5.05 per share
- Stock dropped 15.48% to $5.11 following the announcement
- Company plans to sell 40 million additional shares with option for underwriters to purchase more
- Proceeds will fund certification, manufacturing, and commercial operations preparation
- This follows a recent $500 million investment from Toyota Motor
Joby Aviation (NYSE: JOBY) saw its stock price fall sharply by 15.48% to $5.11 on Thursday after announcing plans to raise $200 million through a secondary public offering of common stock.
The electric air taxi developer revealed late Thursday that it would sell 40 million additional shares at $5.05 per share. The company is also granting underwriters a 30-day option to purchase additional shares, which could bring the total proceeds to $202 million after expenses.
Morgan Stanley and Allen & Company LLC are serving as joint book-running managers for the offering, which comes just weeks after Joby secured a $500 million investment from Toyota Motor.
The California-based company plans to use the new capital to support its ongoing certification efforts for its electric vertical takeoff and landing (eVTOL) aircraft. The funds will also help finance manufacturing operations and prepare for commercial launch.
The stock offering represents a notable expansion of Joby’s share count, which contributed to the negative market reaction. Trading volume surged to over 73 million shares, compared to an average daily volume of about 8 million.

Joby’s market capitalization currently stands at approximately $4 billion, even after the day’s decline. The company’s stock has traded between $4.50 and $7.69 over the past 52 weeks.
The offering comes at a crucial time for Joby as it works to bring its air taxi service to market. The company is developing electric aircraft capable of vertical takeoffs and landings, aimed at providing urban air mobility services.
The path to commercial operations requires substantial capital investment. Joby faces ongoing expenses related to aircraft certification, manufacturing facility development, and preparation for eventual passenger services.
Currently pre-revenue, Joby’s latest financial moves reflect the capital-intensive nature of aviation development. The company’s gross margin stands at -2,977.42%, highlighting the substantial costs involved in its development phase.
The stock offering is structured under a Form S-3 registration statement filed with the Securities and Exchange Commission, which became automatically effective upon filing on October 24, 2024.
Potential investors can access the preliminary prospectus through the SEC’s website or through the offering’s book-running managers. The offering remains subject to market conditions and other factors.
The company’s vision involves developing quiet, fast air taxi services for urban areas. These electric aircraft are designed to help passengers bypass ground traffic by providing direct air transportation between locations.
For current shareholders, the offering represents a dilution of their ownership stakes. However, the additional capital strengthens Joby’s financial position as it moves toward commercialization.
This latest funding initiative follows several other strategic moves by Joby, including the recent Toyota investment, as the company positions itself in the emerging urban air mobility market.
The stock closed at $5.11 on October 25, 2024.
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