Shares of Joby Aviation, Inc. (JOBY) plunged 6.79% in the after-hours trading session on Tuesday, as investors weighed the company's significant cash burn and potential dilution risks outlined in a recent analyst report.

While Joby has made progress in its pursuit of electric vertical take-off and landing (eVTOL) aircraft, the company's ambitious plans to both manufacture eVTOLs and operate an air taxi service come with substantial capital requirements and potential pitfalls.

In its latest earnings report, Joby revealed a staggering $156.7 million operating loss, primarily driven by research and development expenses. With cash reserves of $737.8 million, the company can sustain these losses for roughly a year, but analysts warn that management may need to resort to further equity issuance, potentially diluting existing shareholders' stakes.