Joby Aviation Shares Slide 35% After $1.2B Capital Raise and Cash Burn
Joby Aviation’s stock has fallen 35% since January 1 despite posting Q4 EPS of -$0.14 versus -$0.22 estimates and $30.84 million in revenue, nearly doubling projections. A $1.2 billion capital raise in late January and ongoing $350 million cash burn in H1 2026 spurred dilution and investor concern.
1. Stock Performance Decline
Joby’s share price has plunged roughly 35% since January 1, disconnecting market sentiment from recent operational milestones. The sharp drop underscores investor unease over funding needs despite progress toward commercialization.
2. FAA Certification Progress
The company achieved an 18-point improvement in the fourth stage of FAA certification and began production of its first FAA-conforming aircraft. Passenger services in Dubai remain targeted for 2026, but shifting timelines have weighed on confidence.
3. Capital Raise and Dilution
In late January, Joby raised $600 million through stock sales at $11.35 per share and $600 million via convertible notes. Issuance of about 52.9 million new shares at a 15% discount drove an immediate 10% pre-market slide and added roughly 17% more pressure that week.
4. Cash Burn and Runway Outlook
Joby burned $509.9 million in 2025 and expects another $340 million to $370 million in H1 2026. With roughly $2.6 billion in cash on hand post-raise, the company has runway but faces dilution risks and potential for further capital needs if commercialization is delayed.