NEW YORK, July 10, 2026 — Shares of Joby Aviation (JOBY) are heading into Friday trading down 10.4% from Monday's close, after a sharp decline earlier in the week. The stock fell 8.97% on Tuesday and has remained under pressure since, closing Thursday at $7.99. The broader eVTOL (electric vertical takeoff and landing) sector has also been hit, with Archer Aviation (ACHR) declining 9.7% and Vertical Aerospace (EVTL) sliding 10.9% over the same period.
The selloff comes amid ongoing legal disputes between Joby and Archer. Archer is currently asking a federal judge to dismiss Joby's latest trade secret lawsuit. However, the market appears to be pricing in a broader sector-wide risk rather than a company-specific issue, as the equal-weighted group of the three eVTOL stocks fell 10.3%, underperforming the Nasdaq Composite, which rose 0.3% during the same timeframe.
Legal Landscape and Timelines
The legal battle involves two separate proceedings. In federal district court, responses to dismissal motions are due by July 20, with a hearing scheduled for August 11. This case focuses on Joby's updated trade secret claims. Meanwhile, the U.S. International Trade Commission (ITC) is investigating Archer's allegations that Joby infringed on five patents related to electric aircraft and power systems. The ITC's initial ruling is expected by May 14, 2027, with a full investigation concluding by September 14, 2027. Archer is seeking a limited exclusion order that would block imports of infringing products at the border, along with cease-and-desist orders.
In June, Judge Susan van Keulen allowed Joby's trade secret claim related to a developer agreement to proceed past early dismissal, though she dismissed three broader claims as too vague. She also threw out Archer's counterclaims related to tariffs and China but allowed Archer to refile them. Archer's attorney Eric Lentell described the ruling as "primarily procedural in nature," while Joby's Alex Spiro said he was "pleased and not surprised."
Financial Position and Execution
Joby ended the first quarter with $2.5 billion in cash, cash equivalents, and short-term investments, representing about one-third of its $7.5 billion market capitalization. CEO JoeBen Bevirt stated in May that the company now has "the clearest path we've ever had to beginning passenger operations." The company has begun flight tests of its first production aircraft ahead of upcoming FAA reviews and expects to start some U.S. service and launch operations in Dubai in 2026. Joby aims to build four aircraft per month by 2027, putting its production and certification schedule ahead of the ITC timeline.
Market Context and Risks
Higher interest rates are also weighing on eVTOL stocks. The 10-year U.S. Treasury yield was at 4.542% early Friday. These stocks are sensitive to rate changes because most of their future cash flows are expected years down the line, making them akin to long-duration assets. A rise in rates reduces the present value of those future earnings.
The tail risk for Joby remains: a negative ITC decision could stall imports or force design and supplier changes, potentially delaying certification and commercial launch. Conversely, if the claims are dismissed, settled, or circumvented through design updates, the focus would shift back to certification and production milestones.
Investors are watching closely as the legal and regulatory timelines unfold, with the district court case moving faster than the ITC process. The sector's performance will likely be influenced by both legal outcomes and the broader macroeconomic environment.
