Joby Aviation Plummets 4.85% Amid Legal Turmoil and Regulatory Uncertainty

Summary
• Joby Aviation sues Archer Aviation over alleged IP theft, sparking legal and market volatility
• Dubai air taxi milestones and FAA certification delays cast shadow over commercialization
• Intraday price drops to $13.73, down 4.85% from previous close of $14.43
• Turnover surges to 8.89 million shares, signaling heightened short-term trading activity

Joby Aviation’s stock faces a sharp intraday decline amid a confluence of legal disputes, regulatory delays, and mixed sector sentiment. The company’s recent lawsuits against rivals and its aggressive global expansion plans contrast with a volatile price action that has pushed the stock near its 52-week low of $4.96. With the FAA certification process in its final stages and a $978 million cash runway, the stock’s near-term trajectory hinges on resolving legal challenges and securing regulatory clarity.

Legal Disputes and Regulatory Delays Weigh on Investor Sentiment
Joby Aviation’s intraday selloff is driven by a combination of legal headwinds and regulatory uncertainty. The company’s recent lawsuit against Archer Aviation over alleged trade secret theft has intensified market skepticism about its competitive positioning. Simultaneously, the FAA’s Type Inspection Authorization (TIA) process remains in its final phase, with commercial operations in the U.S. still pending. While Joby has initiated passenger flights in Dubai, the lack of U.S. regulatory approval has created a perception of operational risk. Additionally, the stock’s technical indicators—such as the RSI at 46.23 and MACD crossing below the signal line—suggest short-term bearish momentum, amplifying selling pressure.

Aerospace & Defense Sector Sinks with JOBY's Plunge
The Aerospace & Defense sector, as represented by Boeing (BA), has mirrored JOBY’s downward trend, albeit with a more muted decline of -0.43%. This correlation underscores broader sector-wide concerns over regulatory scrutiny and geopolitical uncertainties. While Boeing’s struggles with 737 Max production and labor strikes reflect systemic industry challenges, JOBY’s legal disputes and certification delays highlight sector-specific risks for emerging eVTOL players. The sector’s mixed performance—bolstered by defense spending but weighed by commercial aviation headwinds—creates a fragmented backdrop for JOBY’s near-term recovery.

Options Playbook: Capitalizing on Volatility and Key Levels
• Technical Indicators: 200-day MA at $11.50 (below current price), RSI at 46.23 (neutral), MACD at -0.58 (bearish), Bollinger Bands (Lower: $12.38, Middle: $14.71)
• Key Levels: Support at $12.38 (lower Bollinger Band), resistance at $14.71 (middle Bollinger Band)
• Short-Term Outlook: A test of the $12.38 support level could trigger further downside, while a rebound above $14.71 may signal a short-term bounce.

Top Options Picks:
• JOBY20251205P13.5 (Put Option):
- Strike: $13.50, Expiry: 2025-12-05, IV: 77.59%, Delta: -0.40, Theta: -0.0007, Gamma: 0.31, Turnover: 11,933
- IV (Implied Volatility): High volatility suggests potential for price swings
- Delta: Moderate sensitivity to price movement
- Gamma: High sensitivity to price changes, ideal for volatile environments
- Turnover: Strong liquidity ensures ease of entry/exit
- Payoff Calculation: A 5% downside to $12.99 would yield a $0.51 profit per contract (max profit: $510).
- Why This Pick: High gamma and moderate delta position this put for gains if the stock breaks below $13.50.

• JOBY20251205C14.5 (Call Option):
- Strike: $14.50, Expiry: 2025-12-05, IV: 82.92%, Delta: 0.31, Theta: -0.0789, Gamma: 0.26, Turnover: 7,855
- IV: Elevated volatility supports potential for rebound
- Delta: Low sensitivity, suitable for a bullish bounce
- Theta: High time decay, ideal for short-term plays
- Gamma: Moderate sensitivity to price movement
- Payoff Calculation: A 5% upside to $14.42 would yield a $0.92 profit per contract (max profit: $920).
- Why This Pick: High IV and theta make this call a speculative play if the stock rebounds above $14.50.

Trading Insight: Aggressive bears may consider JOBY20251205P13.5 into a breakdown below $13.50, while bulls could target JOBY20251205C14.5 for a short-term bounce above $14.50.

Backtest Joby Aviation Stock Performance
I attempted to generate the set of event dates where Joby Aviation (ticker JOBY.N) experienced an intraday plunge of at least –5 % (defined as “day’s low ≤ day’s open × 0.95”) between 2022-01-01 and today. To do that robustly we need daily Open and Low prices. The data feed I just queried returned closing-price‐based technical indicators (moving averages, etc.) but did not supply the raw Open / Low fields, so the plunge filter cannot yet be calculated.Two ways forward:1. I can try an alternative definition that only relies on data we already have—for example, a –5 % drop in the daily Close versus the day’s Open or the prior day’s Close. 2. If you have access to, or can provide, a data file (CSV/Excel/JSON) that contains at least Date, Open and Low for JOBY from 2022-01-01 onward, I can upload that and continue with the exact intraday-low criterion you requested.Which approach would you prefer?

Critical Crossroads: Legal Clarity and FAA Certification Will Define JOBY’s Near-Term Fate
Joby Aviation stands at a pivotal juncture, with its stock price and strategic momentum hinging on the resolution of its legal disputes and the outcome of its FAA certification process. The recent lawsuits against Archer Aviation, while signaling a defensive stance, have introduced market uncertainty. Meanwhile, the stock’s technical indicators and options activity suggest a high probability of continued volatility. Investors should closely monitor the $12.38 support level and the $14.71 resistance threshold, as a breakdown below the former could accelerate the decline. In the broader sector, Boeing’s -0.43% intraday dip highlights shared regulatory and operational risks. For now, the path forward for JOBY remains precarious—legal clarity and regulatory green lights will be the key catalysts for a sustained recovery.