We recently published 10 Stock Titans With Massive Losses. Joby Aviation Inc. (NYSE:JOBY) was one of the worst performers on Thursday. Joby Aviation declined by 16.68 percent on Thursday to close at $11.14 apiece as investors digested the potential dilution of existing shares following plans to raise  $1.38 billion in fresh funds from the issuance of convertible senior notes and new stocks. In a statement, Joby Aviation Inc. (NYSE:JOBY) said that it plans to offer $690 million from the issuance of conver ...

Why Joby Aviation Stock Is Plunging - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Why Joby Aviation Stock Is PlungingBy [Al Root]ShareResize---ReprintsIn this article[JOBY][SPX][DJIA]Joby is aiming to sell electric air taxis and analysts ...

Core Viewpoint - Joby Aviation, Inc. has signed an agreement to acquire a manufacturing facility in Dayton, Ohio, which will support its plans to increase aircraft production and facilitate future growth [1] Group 1: Acquisition Details - The manufacturing facility spans over 700,000 square feet and is ready for immediate use [1] - The facility will initially support Joby's plans to double production to four aircraft per month by 2027 [1] Group 2: Future Growth Potential - The acquisition provides space for significant future growth beyond the initial production increase [1]

Core Insights - Saudi Arabia's General Authority of Civil Aviation (GACA) has signed an agreement with Archer Aviation to collaborate on the deployment of electric air taxis across the Kingdom [1] - The collaboration aims to establish a regulatory framework for the introduction and scaling of eVTOL air taxi operations in Saudi Arabia [1] Group 1 - The agreement signifies a strategic partnership between GACA and Archer Aviation to enhance urban air mobility in Saudi Arabia [1] - The initiative aligns with the Kingdom's broader goals of innovation and modernization in transportation [1]

Core Viewpoint - Archer Aviation is facing negative market reactions due to concerns over its growth costs, recent earnings, and a significant share sale [2][8]. Company Overview - Archer Aviation operates in the advanced aircraft and related technology sector, focusing on electric air taxis, also known as EV tolls [4][5]. - The company has a market capitalization of approximately $5 billion and is involved in both commercial and defense sectors [3]. Financial Performance - Archer Aviation is currently a pre-revenue company, not generating sales yet, and is in the certification phase for its aircraft [4][5]. - The company reported a net loss of $129.9 million, which was narrower than the expected loss of $178.6 million [7]. - The stock price has decreased by 13%, trading around $7, following the announcement of a $65 million stock offering that will dilute current shareholders' value [8][9]. Strategic Developments - Archer Aviation has been selected as the official air taxi provider for the LA28 Olympic and Paralympic Games, which is a significant development for the company [6]. - The acquisition of Hawthorne Airport in LA for $126 million is part of the company's strategy to support its role during the Olympics [10]. Market Sentiment - Despite the downward momentum in the stock price, notable investors like Kathy Woods have increased their positions in Archer Aviation, indicating some confidence in the company's long-term potential [10][11].

Core Insights - The article discusses the emergence of companies in the "Zero-Dollar Club," which includes Rigetti Computing, Joby Aviation, and QuantumScape, all of which have high valuations despite not generating traditional revenue [1][5]. Company Summaries Rigetti Computing - Rigetti is focused on quantum computing and has not yet generated traditional revenue, but it has a market cap exceeding $17 billion and a year-to-date stock rally of 220% [2]. Joby Aviation - Joby is developing electric air taxis and currently has no commercial flights generating revenue. Its market cap is over $15 billion, with a year-to-date stock increase of 115% [3]. QuantumScape - QuantumScape is a battery startup aiming to produce solid-state EV cells, with a valuation around $9.7 billion. The company has not yet generated revenue, but investor interest in next-gen batteries is driving its stock price [4]. Investor Sentiment - The common thread among these companies is the investor preference for potential future profits over current financial performance, leading to significant stock price volatility and high valuations [5].

Company Overview - Kodiak AI went public through a merger with Ares Acquisition Corporation II, valuing the startup at approximately $2.5 billion [3] - The company raised $275 million in financing, with $212.5 million from institutional investors, including $145 million in PIPE funding and $62.9 million in trust cash from Ares [2] Business Operations - Kodiak AI is developing autonomous vehicles for various applications, including highway, industrial, and defense uses [3] - The company is focused on unstructured autonomy, particularly in defense logistics and reconnaissance operations [7] Partnerships and Contracts - Gatik, another autonomous vehicle startup, has formed a multi-year partnership with Loblaw, deploying 20 autonomous trucks by the end of 2025 for driverless deliveries in the greater Toronto area [5] - The trucks will operate autonomously across a regional network, picking up products from two distribution centers and delivering to over 300 retail stores [4] Industry Trends - The autonomous vehicle industry is still in its early stages, with significant capital requirements and ongoing developments [6] - Companies are exploring various routes to access public markets, with SPACs being a popular choice for funding [7] Recent Developments - Hyundai's electric air taxi startup Supernal is undergoing a reorganization of its leadership team amid challenges in its air taxi program [9][10] - Battery materials startup Sila has commenced operations at its facility in Moses Lake, Washington, which is the first large-scale silicon anode factory in the West [20]

Group 1 - Joby Aviation and Uber Technologies plan to integrate Blade's air mobility services into the Uber app as early as next year following Joby's acquisition of Blade's passenger business [2][4] - In 2024, Blade successfully transported over 50,000 passengers across key routes in the New York metropolitan area and Southern Europe, connecting major destinations [3] - Joby aims to leverage Blade's infrastructure and experience in vertical air travel to accelerate the rollout of its electric air taxi service in cities like Dubai, New York, Los Angeles, the UK, and Japan [5] Group 2 - Joby's electric aircraft is designed to carry four passengers and a pilot at speeds of up to 200 mph, with an acoustic footprint 100 times lower than traditional helicopters [5] - Once integrated, Uber users will be able to book Blade flights directly through the Uber app, facilitating faster and seamless journeys in busy urban environments [6] - Joby and Uber have been collaborating on urban air mobility since 2019, with Joby's acquisition of Uber's Elevate division in 2021 significantly advancing the sector [4]

Core Insights - Uber is partnering with Joby Aviation to integrate Blade's helicopter service into the Uber app, aiming for implementation as early as next year [1][2] - Joby's acquisition of Blade Air Mobility for $125 million enhances its urban mobility network and prepares for the introduction of electric air taxis [1][2] - Joby's eVTOL aircraft can travel up to 200 mph with zero emissions, targeting urban travel improvements [3][4] Company Developments - The partnership with Uber is expected to facilitate Joby's entry into key urban markets and expedite commercial service once its aircraft are certified [2][4] - Joby has successfully conducted piloted flights in Dubai and plans to launch its service there in 2026 [4] - Joby Aviation's stock experienced volatility following the announcement, initially rising before settling at about a 1% increase, while Uber's stock fell by over 1% [6]

Acquisition and Business Strategy - Joby Aviation is acquiring Blade Air Mobility for $125 million, aiming to expand its electric air taxi service [1] - The acquisition provides Joby with an existing customer base and more takeoff and landing locations [2] - Blade transported over 50,000 passengers in the NYC area last year, indicating a strong demand for helicopter shuttle services [3] Technology and Innovation - Joby's electric aircraft aims for zero operating emissions and reduced noise compared to traditional helicopters [7] - Joby plans to progressively introduce automation, with the long-term goal of pilot-free aircraft [8][9] - The electric helicopter technology has been in development for several years, with ongoing testing for safety and reliability [11] Regulatory and Public Perception - New York City Council passed a bill to restrict non-essential helicopter flights based on FAA noise standards [6] - Public concerns exist regarding helicopter noise, emissions, and safety risks, particularly in urban areas like New York City [4][5] - Joby emphasizes that its electric aircraft will lead to quieter skies, addressing community concerns [7]