Joby Aviation Shares Dip After Morgan Stanley Downgrade

NEW YORK, N.Y. – Joby Aviation, Inc. saw its stock fall following a downgrade by Morgan Stanley on April 11, 2025. The company’s shares closed at $5.93, reflecting a 1.50% decline for the day. Analysts have expressed concerns about prolonged uncertainty impacting Joby’s growth prospects in the competitive market of electric air taxi services.

Joby Aviation is at the forefront of developing electric air taxis intended for commercial passenger service. The all-electric, vertical take-off and landing (eVTOL) aircraft is designed to carry a pilot and four passengers at speeds of up to 200 miles per hour with a maximum range of 100 miles. The company’s vision includes delivering aerial ridesharing services through an app while also engaging government clients such as the U.S. Air Force.

According to a report by Morgan Stanley, Joby’s outlook has been overshadowed by market fluctuations and concerns regarding consumer and business spending. The report downgraded Joby Aviation to a “Hold” rating following an analysis of its financial health and market conditions. Morgan Stanley’s analysts note that while the electric aviation sector holds promise, uncertainties surrounding tariffs are likely to restrain growth, leading to cautious market behavior.

By contrast, Joby Aviation’s competitors have capitalized on the growing demand for electric flight solutions, putting additional pressure on Joby to innovate and maintain competitiveness. With a workforce of over 2,000 employees, Joby operates a manufacturing and engineering facility in San Carlos, California, which focuses on the development of electric aircraft and flight testing.

As of now, analysts indicate a mean target price of $7.68 for Joby Aviation, representing a potential upside of nearly 29.64% from its last close. This contrasts sharply with the recent performance, where the stock has seen a year-to-date decline of approximately 27.06%.

For potential investors, the key will be to monitor Joby’s ability to navigate industry hurdles and the broader economic landscape to determine if it can capitalize on the projected growth of electric air taxi services in the years to come.