Joby Aviation (NYSE:JOBY) ended the pre-holiday session on July 2 at $8.49, a decline of 3.96%, before edging up to $8.51 in after-hours trading. The stock has fallen 3.85% over the past five trading sessions, reflecting cautious sentiment as the market digests insider trading filings and a newly disclosed joint venture with Toyota Motor Corporation.
Insider Sales Raise Eyebrows
On July 2, seven Rule 144 filings were submitted, covering a total of 63,223 shares with an aggregate market value of approximately $563,851. These sales represented just 0.11% of the day's trading volume of 56.18 million shares. The filings indicate that the shares were acquired as restricted stock units under Joby's 2021 incentive plan. Among the filers were key executives, including founder and CEO JoeBen Bevirt (15,788 shares), Eric Allison (9,330 shares), and Katherine DeHoff (9,575 shares).
Despite the insider activity, the volume of shares sold is relatively small compared to Joby's total outstanding shares of 983.6 million and the day's heavy trading volume, which was well above the 65-day average of 32.86 million shares.
Toyota Joint Venture Takes Shape
The more significant development for the week is the formation of the Joby Toyota Aero Manufacturing Preparation Company, a joint venture in which Toyota will hold a 51% stake and Joby the remaining 49%. Toyota will appoint three of the five directors. The venture is expected to have exclusive rights to manufacture Joby's S4 Series aircraft, with Joby licensing the aircraft's intellectual property on a royalty-free basis.
The joint venture agreement also includes a second $250 million investment tranche from Toyota, which is contingent on finalizing future supply and intellectual property agreements. This funding would represent about 10% of Joby's total liquidity of $2.47 billion as of March 31, which included $874.5 million in cash and cash equivalents and $1.59 billion in short-term investments.
Market Context and Short Interest
Joby's decline stood in contrast to its eVTOL peers. Archer Aviation (NYSE:ACHR) rose 1.22% to $4.98, and Vertical Aerospace (NYSE:EVTL) gained 0.54% to $1.85. The divergent performance highlights company-specific factors weighing on Joby, including the insider sales and the uncertainty surrounding the Toyota joint venture's final terms.
Short interest in Joby remains elevated, with 100.74 million shares sold short as of June 15, representing 16.0% of the float. This is nearly 1.8 times the July 2 trading volume and dwarfs the insider sales, indicating that bearish bets continue to pressure the stock.
Looking Ahead
Joby's recent progress includes completing the first flight of an FAA-conforming aircraft and wrapping up its SR3 audit with the FAA. The company aims to begin commercial flights in 2026 through the White House eVTOL Integration Pilot Program, even before full FAA type certification. Investors will be watching three key numbers on Monday: the $8.49 price level, the 100.74 million short interest, and the $250 million Toyota tranche dependent on the joint venture's supply agreement.
