Al Root

Joby Aviation stock plunged ahead of the open Thursday after the company announced a capital raise.

Shares of the electric takeoff and landing, or eVTOL, aircraft maker were down 9.1% at $12.15 in premarket trading, while S&P 500 futures were up 0.2% and Dow Jones Industrial Average futures were flat. Joby stock dropped 0.7% in regular trading Wednesday to $13.37.

The move came after Joby disclosed plans to raise $1 billion in convertible bonds and stock.

The reaction is understandable. More stock means existing shareholders own a little less of the company. Still, investors know Joby, which aims to sell electric air taxis, needs capital. Wall Street sees the company spending about half a billion dollars a year over the next few years as it builds its business.

The company doesn't generate significant sales yet as it works to certify its aircraft for commercial service. Joby plans to achieve certification milestones in the Middle East in the first half of 2026 and in the U.S. in the second half of 2026.

When certified, operators can use eVTOL to ferry passengers short distances in what are hoped to be quiet, safe, and easy-to-operate aircraft.

Wall Street has high hopes for the technology. Analysts project annual sales of $1.2 billion by 2029.

The shares trade for about 10 times estimated 2029 sales, a rich valuation multiple, which is one reason why only 18% of analysts covering the stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Joby stock is about $13.

Coming into Thursday trading, Joby's stock was up about 60% over the past 12 months.

Write to Al Root at allen.root@dowjones.com

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January 29, 2026 04:03 ET (09:03 GMT)

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