JOBY stock sinks on dilution concerns, but structural tailwinds warrant buying the dip

Joby Aviation Inc. (NYSE: JOBY) opened roughly 10% down on Wednesday after revealing plans of a major stock offering that it said will result in more than $500 million in gross proceeds.

In its press release, the air taxi company said it will sell 30.5 million shares at $16.85 apiece – with an additional 4.575 million shares available to underwriters for another 30 days.

Despite today’s decline, JOBY stock remains up over 200% versus its year-to-date low in April.

Why did JOBY stock tank on secondary offering announcement

JOBY shares are responding negatively to the follow-on offering since it will dilute the company’s existing shareholders.   

Issuing over 30 million new shares increases the float and pressures valuation multiples, especially with no immediate revenue offset. The offering’s timing, just as JOBY stock approached a breakout level of about $21, adds to the frustration.

The air taxi firm had recently surpassed its 50-day moving average – and investors had been eyeing a continuation of the cup-base pattern. But the sudden supply overhang could stall momentum.

Joby Aviation Inc will use the proceeds to fund its certification and manufacturing efforts to better prepare for its upcoming commercial operations. However, dilution concerns are front and centre – at least for now.

Should you buy the dip in Joby Aviation shares today?

While the stock offering does raise dilution concerns, long-term investors still have ample reasons to consider buying the dip in JOBY stock on Wednesday.

For example, the company’s recent flight demonstrations offer compelling evidence of operational progress.

Most recently at the California International Airshow, the NYSE-listed firm showcased its eVTOL aircraft with round-trip flights between Marina and Salinas – routes that by car would take nearly 40 minutes.

These vertical takeoffs, cruise transitions, and hover maneuvers validate Joby’s technology in real-world conditions.

Meanwhile, at Expo 2025 in Osaka, Joby is conducting 20 public flights in partnership with ANA Holdings, helping shape Japan’s regulatory framework for air taxis.

These events aren’t just PR – they’re like proof of concept. For long-term investors, they reinforce Joby Aviation’s readiness to scale and its potential to lead the urban air mobility revolution.

Joby Aviation has a strong balance sheet

For new investors, Joby Aviation stock comes as an attractive choice as the company is expanding its global footprint at an exciting pace.

In addition to its Japan showcase, the company has secured agreements in the UAE, including a planned launch in Ras Al Khaimah by 2027 and passenger flights in Dubai as early as next year.

These partnerships tap into government support and infrastructure, laying the groundwork for commercial operations. Joby also holds a strong cash position – nearly $1.0 billion as of Q2 – and expects to use the offering proceeds to fund certification, manufacturing, and working capital.

With the FAA’s advanced air mobility pilot programme underway and international regulators engaged, JOBY stock is strongly positioned to capitalize on a multi-billion-dollar market.

For investors with a long horizon, the dip in JOBY shares may just be a gift.

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