Shares of Joby Aviation Inc (NYSE: JOBY) experienced a significant decline in after-hours trading following the company's disclosure of a proposed securities offering. The drop comes as Joby announced intentions to raise capital via a combination of common stock and convertible senior notes, signaling a major fundraising effort.
The offering includes convertible senior notes due in 2032 alongside common stock shares, with the company targeting proceeds close to $1 billion. Underwriters for the transaction are expected to receive a 30-day option to purchase additional securities, allowing for potential expansion of the initial offering size.
In parallel, Morgan Stanley plans to conduct a delta offering of Joby's shares. Importantly, this delta offering will not introduce new shares to the market nor will Joby receive proceeds from it; rather, the exact share quantity will be determined during pricing to facilitate hedging and liquidity.
A portion of the capital raised through the note offering is slated to cover costs associated with capped call transactions, which can mitigate dilution from the convertible notes. The remainder of the net proceeds, together with funds from the common stock sale and existing cash reserves, will finance the company’s ongoing efforts in certification, manufacturing, and preparation for commercial operations.
As of September 30, 2025, Joby held approximately $978.1 million in cash, cash equivalents, and investments in marketable securities. This level of liquidity, combined with the proposed infusion from the offering, is geared toward supporting the company during the critical scale-up phase.
Following the announcement, Joby’s stock price recorded an 11.43% decline in after-hours trading, settling around $11.85 at the time of reporting. This market response reflects investor reactions to the dilution potential and capital raise.
Looking ahead, Joby is scheduled to release its next quarterly earnings report in the coming month. Market participants will likely scrutinize this update for indications of operational progress and financial health amid the fundraising initiative.
For investors considering exposure to JOBY, purchasing shares can be done through standard brokerage accounts that may also offer fractional shares. On the other side, engaging in bearish positions entails more complexity, requiring options trading capabilities or short selling arrangements through qualified brokers.