SANTA CRUZ, Calif. – Joby Aviation , Inc. (NYSE: NYSE:JOBY), a pioneer in the development of electric air taxis, has initiated a public offering of common stock valued at up to $200 million. The company, which is gearing up for the commercial launch of its all-electric vertical take-off and landing (eVTOL) air taxi, announced today its intention to also provide underwriters a 30-day option to purchase an additional $30 million in shares.
The proceeds from this offering, supplemented by Joby's current financial assets, are earmarked for advancing certification and manufacturing processes, preparing for commercial operations, and for general corporate purposes. However, the completion and terms of the offering are dependent on prevailing market conditions, and no guarantees have been made regarding the finalization or specifics of the offering.
Morgan Stanley and Allen & Company LLC have been appointed as the joint book-running managers for the offering. A registration statement for the shares has already been filed with the U.S. Securities and Exchange Commission (SEC) on October 24, 2024, and is effective immediately. Details regarding the offering will be available through the prospectus, which can be accessed via the SEC's website or directly from the managing firms.
This press release does not constitute an offer to sell or a solicitation to buy these securities, and any sales will comply with all applicable state and federal securities laws.
Joby Aviation has been at the forefront of eVTOL innovation, with plans to launch a service that promises to be fast, quiet, and convenient for urban transportation. The company's forward-looking statements indicate a positive outlook on the proposed offering's completion and its contribution to the company's strategic goals.
It is important to note that this article is based on a press release statement, and the actual outcome of the offering may vary due to market risks and uncertainties. Joby Aviation has yet to provide a definitive timeline for the offering's completion or the final terms and has cautioned that the process may not proceed as planned.
In other recent news, Joby Aviation Inc. has been the focus of several significant developments. The company recently received a substantial $500 million investment commitment from Toyota Motor (NYSE:TM) Corporation, aimed at advancing the certification and commercial production of Joby's electric air taxi. The investment is structured to occur in two stages, in 2024 and 2025, contingent upon receiving regulatory approvals and finalizing necessary commercial agreements.
In the realm of analyst ratings, H.C. Wainwright reaffirmed a Buy rating for Joby Aviation, while Deutsche Bank maintained a Sell rating. These ratings reflect differing views on the company's prospects, particularly in light of the Toyota investment.
Joby Aviation reported a net loss of $123 million in Q2 2024 but maintained a solid financial position with $825 million in cash and short-term investments. The company is also making significant strides towards becoming an air taxi operator in the United Arab Emirates (UAE), following agreements with Dubai's Road and Transport Authority and multiple Abu Dhabi entities. Despite these positive developments, Deutsche Bank suggests that additional funding between $300 million to $500 million might be necessary by late 2025 or early 2026.
In parallel, Joby Aviation has acknowledged the Federal Aviation Administration's (FAA) release of new regulations that pave the way for the operation of its electric aircraft in the United States. This development is a critical milestone for the company, as it establishes the requirements for pilot training and the operation of air taxis. The FAA has described the new rule as the final piece of the puzzle for safely introducing these aircraft in the near term.
InvestingPro Insights
Joby Aviation's public offering of up to $200 million in common stock comes at a time when the company is showing some promising financial indicators, according to InvestingPro data. The company's market capitalization stands at $4.47 billion, reflecting investor confidence in its potential within the emerging eVTOL market.
InvestingPro Tips highlight that Joby holds more cash than debt on its balance sheet, which could be seen as a positive factor for potential investors in this offering. This strong cash position aligns with the company's stated intention to use the proceeds for advancing certification, manufacturing processes, and preparing for commercial operations.
Additionally, Joby boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 78.8% for the last twelve months as of Q2 2024. This high margin could indicate efficient cost management in the company's early stages of development.
However, it's worth noting that Joby is not yet profitable, with a negative operating income of $546.59 million for the same period. This is not unusual for companies in the developmental stage of innovative technologies, and the current offering may help bridge the gap to profitability.
The stock has shown significant volatility, with a strong return of 21.17% over the last month and 27.87% over the past six months. This recent performance could potentially support investor interest in the new stock offering.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Joby Aviation, providing a deeper understanding of the company's financial health and market position.
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