Joby Aviation Shares Drop 12% Amid eVTOL Market Competition

Shares of US-based electric vertical takeoff and landing (eVTOL) manufacturer Joby Aviation experienced a significant decline of 12.43% over the past week, driven by heightened competition in the race to introduce air taxis to commercial service. As of now, Joby’s shares are trading at $16.28. The downturn followed the company’s announcement on October 7, 2025, regarding its plans to raise $514 million through the sale of 30.5 million shares at $16.85 each, marking a 10.9% discount on the stock’s previous closing price.

The funds raised will be directed towards crucial areas such as aircraft certification, production, and preparation for commercial operations, alongside covering general business expenses. The offering concluded on October 9, 2025, with gross proceeds reaching approximately $591 million before deductions.

Intensifying Competition in the eVTOL Sector

This announcement comes as the eVTOL sector witnesses intensified competition, with manufacturers racing for certification and market entry to meet the increasing demand for eco-friendly urban transportation. Competitors such as Archer Aviation and Wisk Aero are also vying for their share of this burgeoning market. Joby aims to commence commercial operations with its S4 eVTOL aircraft by early 2026.

Over the past year, Joby Aviation has shown remarkable stock performance, with shares skyrocketing by more than 170%. This surge began in July 2025, as the price climbed from a range of $7–$8 to $10.55. By August 2025, Joby’s stock peaked at $20.39, its highest valuation to date. Despite this impressive growth, analysts caution that the company currently generates no revenue, which raises questions about its long-term viability. In contrast, Archer Aviation has seen more modest gains, with its shares rising approximately 65% over the last six months, currently trading at $11.97.

Joby’s Progress Towards Certification

Joby Aviation has successfully completed Stage 3 of the FAA’s five-stage type certification process and is about 70% through Stage 4. With only Stage 5 remaining, which involves final paperwork and issuance of the type certificate, the company is nearing approval. In August 2025, Joby began the final assembly of its first conforming aircraft, which will undergo extensive evaluations, including bench and ground tests, to ensure compliance with FAA standards.

The S4 eVTOL aircraft is designed to carry four passengers at speeds of up to 200 mph (322 km/h) and a maximum range of 150 miles (241 km) per charge, depending on weight. Joby asserts this range is sufficient for over 99% of urban routes in major cities like New York and Los Angeles, facilitating high aircraft utilization rates.

Looking ahead, Joby plans to launch passenger air taxi services in Ras Al Khaimah by 2027 and is preparing to initiate operations in Dubai next year. The company has also showcased its aircraft at Expo 2025 in Osaka, Japan, in collaboration with ANA Holdings. Recently, Joby completed its first piloted flight in FAA-controlled airspace, successfully executing a 12-minute flight between two California airports, covering a distance of 10 nautical miles from Marina Municipal Airport (OAR) to Monterey Regional Airport (MRY).

As the eVTOL race accelerates, Joby Aviation remains focused on overcoming the challenges of certification and market entry while navigating a dynamic competitive landscape.