Joby Aviation Inc. (NYSE:JOBY) stock tumbled Thursday after the company priced an upsized set of concurrent public offerings totaling more than $1.18 billion.
The company priced a concurrent offering consisting of $600 million in 0.75% convertible senior notes due 2032 alongside 52.86 million shares of common stock priced at $11.35 per share.
This total deal size represents an increase from the company’s previously announced combined target of $1.0 billion.
Additionally, Morgan Stanley (NYSE:MS) is conducting a “delta offering” of approximately 5.3 million borrowed shares to help note investors manage their hedge positions.
The offerings are scheduled to settle on February 2, 2026.
Convertible Notes, Capped Calls And Use Of Proceeds
The convertible senior notes are unsecured obligations likely to pay interest semi-annually and mature on February 15, 2032.
Investors hold the right to convert these notes at a conversion price of roughly $14.19 per share implying a 25% premium over the public stock offering price.
To protect existing shareholders from excessive dilution, Joby entered into “capped call” transactions with a cap price of $22.70 per share.
Joby expects to clear approximately $1.16 billion in total net proceeds from these deals, assuming underwriters do not exercise their options for additional shares or notes.
The company committed $55 million of the note proceeds to cover the capped call transaction costs.
The company committed the remaining capital, combined with existing cash reserves to funding the company’s push for FAA certification, the scaling of its manufacturing facilities, and preparations for the launch of commercial passenger service.
Joby held $978.1 million in cash and equivalents as of September 30, 2025.
Bulls And Bears Clash On Long-Term Outlook
The sharp selloff highlights the ongoing divide among investors.
JPMorgan Chase has flagged the stock as a top short idea.
The firm argued that the stock traded at a steep premium despite a long path to certification, commercial launch, and profitability.
At the same time, Cathie Wood has continued to add Joby shares through ARK Invest, positioning the company as a long-term bet on the future of urban air mobility.
JOBY Price Action: Joby Aviation shares were down 9.72% at $12.07 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by ARVD73 via Shutterstock
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