Why Joby Aviation Stock Just Crashed

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].