Joby Aviation (JOBY) Plunge 6.39% as Legal Dispute, Regulatory Delays Weigh on eVTOL Sector Outlook

The share price of Joby Aviation (JOBY) fell to its lowest level since September 2025, hitting a nadir so far this month, with an intraday decline of 5.05% on Nov. 21. The stock has now dropped 6.39% over two sessions, marking a continuation of recent weakness amid broader market skepticism about the electric vertical takeoff and landing (eVTOL) sector’s commercialization timeline.

The selloff follows a high-stakes legal dispute with rival Archer Aviation, which Joby alleges stole trade secrets via a former employee, potentially undermining a key partnership. The lawsuit, seeking damages and an injunction, remains unresolved, with a hearing scheduled for March 2026. Meanwhile, the company announced a strategic partnership with Saudi Arabian entities to test air taxi operations starting in mid-2026, signaling international expansion. However, Q3 2025 results revealed a widened net loss of $48 cents per share despite revenue surpassing estimates, highlighting ongoing financial pressures.

Joby’s stock performance reflects broader uncertainties in the eVTOL industry, where regulatory hurdles and intense competition delay commercial viability. While the Saudi deal and regulatory progress on FAA-conforming aircraft offer long-term optimism, near-term risks include legal costs, partnership instability, and investor caution. Analysts remain split on valuation targets, underscoring the sector’s volatility. With $978.1 million in cash reserves, Joby retains liquidity but must navigate a challenging path to profitability amid fierce rivalries and regulatory delays.