Joby Aviation Stock (JOBY) Starts Week Red Following Bearish Goldman Sachs Initiation

Joby Aviation's stock price (NYSE: JOBY) is moving lower early this morning, down 3.12% at $13.98 in the pre-market session. The company, a prominent player in the electric vertical takeoff and landing (eVTOL) aircraft sector, is dealing with a bumpy start to the week following a ‘Sell' rating from Goldman Sachs, casting a shadow over the company's prospects.

Today's dip may do little to deter bulls, with JOBY having delivered a significant 78.37% year-to-date gain. The Goldman Sachs initiation included a $10 price target, implying a potential 29% downside from current levels, injecting considerable caution into the market's perception of Joby's valuation.

Goldman Sachs, while acknowledging Joby's leading position in the eVTOL space on the certification front, raised concerns about the company's valuation. The firm pointed to uncertainties surrounding the linearity of the certification process and the competitive landscape. Critical factors such as the aircraft's payload, which has not been disclosed, and the time required to achieve full-scale manufacturing capacity, also contributed to the negative outlook.

In November 2025, Joby Aviation initiated legal proceedings against Archer Aviation, a rival in the eVTOL market, alleging the theft of trade secrets. The lawsuit claims that a former Joby employee misappropriated confidential information, including business strategies and aircraft specifications, and shared it with Archer. Joby asserts that Archer utilized this information to interfere with a real estate deal, further escalating tensions between the two companies. Archer has refuted the allegations, branding the lawsuit as an attempt to stifle competition.

Adding to the financial complexities, Joby Aviation recently conducted an underwritten public offering of 30.5 million shares at $16.85 per share, generating approximately $513.9 million. The company earmarked these funds for certification and manufacturing efforts, preparations for commercial operations, and general corporate purposes. However, the offering price, set 11% below the previous closing price, triggered a decline in the stock's value, reflecting investor unease.

Despite these challenges, Joby has achieved notable milestones. The company conducted the first flight of an autonomous VTOL aircraft developed in partnership with L3Harris Technologies for military applications. This development opens avenues for further testing and potential military uses, including reconnaissance and communications, signaling a diversification of Joby's potential revenue streams.

Joby has also expanded its manufacturing footprint in California and Ohio, effectively doubling its production capacity. The Marina, California site, now spanning 435,500 square feet, is projected to produce up to 24 aircraft annually, underscoring Joby's ambition to scale commercial operations.