Core Viewpoint - Joby Aviation's shares experienced a significant decline of up to 18% following the announcement of a capital raise totaling approximately $1.2 billion, which includes $600 million in convertible senior notes and nearly 53 million shares priced at $11.35, reflecting a 15% discount to the previous close [1][2]. Group 1: Capital Raise and Market Reaction - The capital raise has led to investor concerns about dilution, resulting in a sharp drop in share price, although JOBY stock remains up 130% compared to its 52-week low [2]. - The convertible notes feature a 0.75% coupon with a conversion price of about $14.19 per share, indicating management's confidence in achieving higher valuations over time [4]. - Joby Aviation had robust liquidity with approximately $978 million in cash and investments, suggesting that the capital raise was discretionary rather than an urgent need [5]. Group 2: Company Milestones and Future Prospects - Joby Aviation is committed to doubling its domestic manufacturing capacity to four aircraft per month by 2027, which is a significant milestone for the company [6]. - The company is expected to secure regulatory approval for commercial air taxi operations in the UAE later this year, indicating potential revenue generation ahead of U.S. certification timelines [7]. - Options traders anticipate that JOBY will trade at about $13.68, approximately 23% above current levels, within the next three months [7]. Group 3: Analyst Sentiment - Wall Street analysts believe that the recent pullback in JOBY stock may have been excessive, with a consensus rating of "Hold" [8]. - The mean target price for JOBY shares is approximately $12.14, suggesting a potential upside of about 10% from current levels [9].

Core Viewpoint - Joby Aviation's stock experienced a significant decline following the announcement of a capital raise, which has raised concerns among investors about the company's financial strategy and market confidence [1]. Group 1: Company Overview - Joby Aviation is focused on developing electric air taxis, with analysts projecting annual sales to reach $1.2 billion by 2029 [1]. Group 2: Market Reaction - The stock price of Joby Aviation dropped sharply on Thursday, indicating a negative market reaction to the capital raise announcement [1].

Core Viewpoint - Joby Aviation has issued a significant amount of new stock and convertible debt, leading to a 17.2% decline in its stock price, indicating potential financial distress and shareholder dilution [2][3][5]. Group 1: Company Actions - Joby Aviation announced it will issue $1 billion in new common stock and convertible senior notes due 2032, which is essentially debt convertible into shares [3]. - The company clarified that it will actually float $600 million in convertible debt and sell 52.9 million shares at $11.35 per share, raising a total of $1.2 billion [4]. - Additionally, Morgan Stanley will sell 5.3 million shares borrowed from third parties, which will not generate new cash for Joby [4]. Group 2: Impact on Shareholders - Joby is offering underwriters an option to buy an additional $90 million in convertible debt and 7.9 million more shares, potentially increasing the total raised to $1.4 billion [5]. - This results in a dilution of approximately 13.3% for existing shareholders, with a total of 121.6 million new shares expected [5]. Group 3: Investment Considerations - The Motley Fool Stock Advisor analyst team has identified 10 stocks they believe are better investment opportunities than Joby Aviation at this time [6].

Group 1 - Joby Aviation is a leader in the development of electric vertical takeoff and landing (eVTOL) aircraft aimed at urban air mobility [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Serina Therapeutics, Inc. (SER) increased by 52% to $4.13 - Digital Currency X Technology Inc. (DCX) rose by 37% to $4.21 - Virtuix Holdings Inc. Class A Common Stock (VTIX) gained 31% to $14.00 - Venu Holding Corporation (VENU) saw a 25% increase to $6.45 - TRX Gold Corporation (TRX) was up 18% to $2.29 - Korro Bio, Inc. (KRRO) increased by 17% to $13.69 - Check-Cap Ltd. (MBAI) rose by 15% to $2.40 - Namib Minerals (NAMM) gained 14% to $7.35 - Austin Gold Corp. (AUST) increased by 11% to $2.84 - SuperX AI Technology Limited (SUPX) was up 9% to $19.12 [3] Premarket Losers - Inuvo, Inc. (INUV) decreased by 26% to $2.42 - Comstock Inc. (LODE) fell by 16% to $2.95 - Joby Aviation, Inc. (JOBY) dropped 14% to $11.40 - ENvue Medical, Inc. (FEED) declined by 12% to $2.02 - Whirlpool Corporation (WHR) was down 10% to $72.25 - USA Rare Earth, Inc. (USAR) decreased by 10% to $22.66 - ServiceNow, Inc. (NOW) fell by 9% to $117.41 - Pinnacle Food Group Limited (PFAI) dropped 9% to $2.15 - BiomX Inc. (PHGE) decreased by 8% to $5.91 - Vyome Holdings, Inc. (HIND) was down 8% to $2.32 [4]

Group 1 - The electric takeoff and landing aircraft maker is raising $1 billion through the sale of common stock and convertible bonds [1]

Core Viewpoint - Joby Aviation, Inc. has announced the pricing of its public offerings, including $600 million in convertible senior notes and approximately 52.86 million shares of common stock at $11.35 per share, increasing the total offering size to $1 billion [1] Group 1: Offerings Details - The note offering consists of $600 million aggregate principal amount of 0.75% convertible senior notes due 2032, with interest payable semi-annually starting August 15, 2026 [3] - The common stock offering includes 52,863,437 shares priced at $11.35 per share, with an option for underwriters to purchase additional shares [1][7] - The delta offering involves 5,286,343 shares borrowed from third parties to facilitate hedging transactions for note investors, also priced at $11.35 per share [1] Group 2: Use of Proceeds - Joby estimates net proceeds from the common stock offering to be approximately $576 million, or $662.4 million if the underwriters fully exercise their option [7] - The net proceeds from the note offering are estimated at approximately $582.9 million, or $670.4 million if the over-allotment option is fully exercised [7] - Proceeds will be used for certification and manufacturing efforts, preparation for commercial operations, and general corporate purposes [7] Group 3: Capped Call Transactions - Joby has entered into capped call transactions to cover shares underlying the notes, with an initial cap price of $22.70 per share, representing a 100% premium over the public offering price [9][10] - These capped call transactions aim to reduce potential dilution of common stock upon conversion of the notes [10] - The capped call transactions are subject to anti-dilution adjustments and may affect the market price of Joby's common stock [11][12] Group 4: Management and Advisors - Morgan Stanley, Allen & Company LLC, and BofA Securities are acting as joint book-running managers for the offerings, with several other firms serving as co-managers [2] - ICR Capital LLC is serving as Joby's financial advisor for the note offering [2] Group 5: Company Overview - Joby Aviation, Inc. is a California-based company developing an all-electric, vertical take-off and landing air taxi service, intending to operate and sell its aircraft globally [15]

Core Viewpoint - Joby Aviation, Inc. has announced the pricing of concurrent public offerings totaling $600 million in convertible senior notes and approximately 52.86 million shares of common stock, with the aggregate offering size increased from a previously announced $1 billion [1] Group 1: Offerings Details - The company is offering $600 million of 0.75% convertible senior notes due in 2032 and 52,863,437 shares of common stock at a price of $11.35 per share [1] - The note offering and common stock offering are scheduled to settle on February 2, 2026, subject to customary closing conditions [1] - The underwriters have a 30-day option to purchase additional notes worth up to $90 million and an additional 7,929,515 shares of common stock [1] Group 2: Financial Terms of the Notes - The notes will accrue interest at a rate of 0.75% per annum, payable semi-annually starting August 15, 2026, and will mature on February 15, 2032 [3] - The initial conversion rate is set at 70.4846 shares of common stock per $1,000 principal amount of notes, equating to an initial conversion price of approximately $14.19 per share, representing a 25% premium over the public offering price [3][4] Group 3: Use of Proceeds - Joby estimates net proceeds from the common stock offering to be approximately $576 million, or $662.4 million if the underwriters fully exercise their option [7] - The net proceeds from the note offering are estimated at approximately $582.9 million, or $670.4 million if the over-allotment option is fully exercised [7] - Proceeds will be used for certification and manufacturing efforts, preparation for commercial operations, and general working capital [7] Group 4: Capped Call Transactions - Joby has entered into capped call transactions to cover the number of shares underlying the notes, with an initial cap price of $22.70 per share, representing a 100% premium over the public offering price [9][10] - These capped call transactions are expected to reduce potential dilution to Joby's common stock upon conversion of the notes [10]

Joby Aviation is raising $1 billion from the sale of shares and convertible bonds, as the air taxi company seeks to double production capacity by 2027 https://t.co/yJrRck9POQ ...

Core Viewpoint - Joby Aviation, Inc. plans to offer convertible senior notes and common stock, aiming to raise a total of $1 billion to support its electric air taxi development and commercial operations [1]. Group 1: Offerings - The company intends to offer convertible senior notes due in 2032 and shares of common stock, with total anticipated proceeds of $1 billion [1]. - Morgan Stanley, along with other financial institutions, will manage the offerings, including a delta offering to facilitate hedging transactions for investors [2]. - The note offering and common stock offering are separate, with no completion contingencies between them, while the delta offering is contingent on the note offering [1][2]. Group 2: Notes Details - The convertible senior notes will be senior, unsecured obligations, maturing on February 15, 2032, with interest payable semi-annually [3]. - Noteholders can convert their notes under certain conditions, with Joby having the option to settle conversions in cash, shares, or a combination [3]. - The notes can be redeemed by Joby starting February 20, 2029, if the stock price exceeds 130% of the conversion price for a specified period [4]. Group 3: Use of Proceeds - Joby plans to use proceeds from the note offering for capped call transactions, certification, manufacturing efforts, and general working capital [6][7]. - If the underwriters exercise their over-allotment option, additional proceeds will also fund capped call transactions [7]. Group 4: Capped Call Transactions - Joby expects to enter into capped call transactions to reduce potential dilution of its common stock upon conversion of the notes [8]. - The option counterparties may engage in derivative transactions that could affect the market price of Joby's common stock and notes [9][10]. Group 5: Company Overview - Joby Aviation is a California-based company developing an all-electric, vertical take-off and landing air taxi service, aiming to operate in cities globally and sell aircraft to other operators [13].