Joby Aviation (NYSE:JOBY) experienced a sharp decline on Tuesday, with shares falling 8.1% to $8.20, significantly underperforming the broader market. The sell-off came after a series of insider filings on July 6 revealed restricted stock unit (RSU) vesting, tax-related sales, and a planned share sale notice from a company executive.
The stock opened at $8.76, briefly touched $9.00, then plummeted to an intraday low of $8.05 before stabilizing. Trading volume exceeded 24.4 million shares, more than double the average. The broader market, as measured by the SPDR S&P 500 ETF (SPY), slipped only 0.3%, while the iShares Russell 2000 ETF (IWM) lost 0.4%, indicating the selling was concentrated in speculative air-mobility names.
Insider Activity Raises Share Count Questions
According to SEC filings, at least 11 Form 4s were filed on July 6, primarily related to RSU vesting. Key executives, including CEO JoeBen Bevirt, CFO Rodrigo Brumana, and several other officers, vested shares and sold portions to cover tax obligations. The sales were executed at prices around $8.92 per share.
- JoeBen Bevirt (CEO): Vested 30,636 shares, sold 15,788 at $8.92 for taxes.
- Rodrigo Brumana (CFO): Vested 5,046 shares, sold 2,601 at $8.92 for taxes.
- Kate DeHoff (officer): Vested 18,576 shares, sold 9,575 at $8.92 for taxes.
- Eric Allison (Chief Product Officer): Vested 18,101 shares, sold 9,330 at $8.92 for taxes.
- Gregory Bowles (Chief Policy Officer): Vested 16,499 shares, sold 5,158 at $8.92 for taxes, and an additional 4,724 shares at $9.10 under a 10b5-1 trading plan.
A Form 144 filed by Bowles indicated a plan to sell 4,724 shares for approximately $40,106.76, and disclosed Joby's total share count at 983,642,852. While the sales are relatively small relative to Joby's $7.74 billion market cap, they draw attention as the stock is highly sensitive to updates on aircraft certification, production timelines, and cash needs.
Short Interest Climbs
Short sellers have been increasing their positions. MarketBeat data shows short interest at 100.7 million shares, or 14.32% of the float, as of June 15—a 13.25% increase from the previous period. By Tuesday afternoon, that figure exceeded the day's intraday volume.
Toyota Joint Venture Adds Uncertainty
On June 30, Joby and Toyota announced the first stage of a strategic manufacturing partnership. According to an SEC filing, Toyota will hold a 51% controlling stake in the new manufacturing operation, with Joby retaining 49%. Toyota will appoint three of five directors and must approve certain future actions, including taking on debt or issuing dividends.
The filing also noted that the exact dollar amounts for mandatory capital contributions have not been finalized and will be detailed in an amended stockholders agreement. This leaves investors without a key financial metric in the production plan. The terms shift focus to certification timelines and funding for production, while the share supply concerns linger.
Balance Sheet Remains a Support
Joby's balance sheet provides some cushion. The company ended the first quarter with $2.5 billion in cash, cash equivalents, and short-term investments, representing roughly 32% of its quoted market cap. In May, Joby reported flying its first FAA-conforming aircraft, completing the third of four major FAA certification reviews, and having parts in production for eight additional aircraft. CEO JoeBen Bevirt stated that Joby now has the "clearest path" yet to launch passenger operations.
Despite these milestones, the insider transactions and the Toyota joint venture's undefined funding terms have renewed investor scrutiny on share count and dilution risks, contributing to Tuesday's sharp decline.
