Joby Aviation (JOBY) Gets Beaten by Discounted Share Sale

We recently published 10 Stocks Taking a Nosedive. Joby Aviation Inc. (NYSE:JOBY) is one of the worst performers on Wednesday.

Joby Aviation fell by 8.14 percent on Wednesday to end at $17.37 apiece as investor sentiment was dampened by plans to raise $513.9 million in fresh funds from a discounted share sale.

In a statement, Joby Aviation Inc. (NYSE:JOBY) said it issued 30.5 million new shares at a price of $16.85 apiece, a 10-percent discount from the $18.91 closing price on Tuesday, the same day it announced the plan.

The share sale also has the potential to increase by another $77.09 million, bringing the total to $591 million, after granting its underwriter a 30-day option to purchase up to an additional 4.575 million shares.

Joby Aviation Inc. (NYSE:JOBY) said it intends to use the net proceeds to fund its certification and manufacturing efforts, prepare for commercial operations, alongside other working capital and general corporate purposes.

The offering is expected to close on Thursday, October 9.

While we acknowledge the potential of JOBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.