Joby Aviation Plunges 8.87% on Analyst Downgrades Volume Ranks 139th as eVTOL Risks Emerge

Joby Aviation (JOBY) fell 8.87% on August 7, 2025, with a trading volume of $0.75 billion, ranking 139th in market activity. The decline followed downgrades from two major investment firms, which cited valuation concerns amid rapid price gains and limited revenue generation. H.C. Wainwright reduced its rating to Neutral from Buy, while Canaccord cut its recommendation to Hold, despite raising its price target to $17. The stock remains up over 110% year-to-date but faces scrutiny over its high risk profile.

Joby, an electric vertical takeoff and landing (eVTOL) developer, has yet to achieve commercial operations or regulatory certification in the U.S., despite progress in Saudi Arabia. Analysts highlighted that its valuation has priced in future milestones, such as FAA approval and production ramp-ups, which remain uncertain. The company reported a $325 million net loss in its June quarter, including a one-time charge, and holds nearly $1 billion in cash. Both brokerages suggested potential equity raises to fund upcoming commercialization efforts.

Despite long-term growth potential in the eVTOL sector, investors are advised to weigh risks. Joby’s path to profitability hinges on regulatory clarity, scalable manufacturing, and market demand validation. The recent sell-off reflects market skepticism about near-term catalysts, though the stock’s trajectory remains speculative for high-risk portfolios. Commercial operations are targeted for late 2026 or early 2027, pending final FAA certification.

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