Joby Aviation Shares Drop After Cantor Fitzgerald Downgrade

NEW YORK, NY — Joby Aviation experienced a sharp decline in its stock price Thursday, falling more than 6% after Cantor Fitzgerald downgraded it to neutral from buy. The investment firm expressed concerns over Joby’s high cash burn rate, which it described as the highest in the air taxi industry.

In the latest quarterly report, Joby reported a loss of $163 million from operations, increasing from a $144 million loss in the previous quarter. Despite this setback, the company has seen its stock rise approximately 35% since receiving a favorable executive order from the U.S. government aimed at accelerating electric vertical takeoff and landing (eVTOL) operations last month.

As a response to the growing air taxi market, Joby partnered with Abdul Latif Jameel to explore establishing a distribution agreement in Saudi Arabia, involving the potential delivery of up to 200 aircraft valued at around $1 billion. Analyst Sheppard pointed out that while Joby remains a strong contender in the eVTOL sector, its current stock valuation is stretched after a significant price increase of nearly 90% over the past year.

Additionally, Joby Aviation concluded the first quarter of 2025 with approximately $1.3 billion in total liquidity. However, the company anticipates a spending range between $500 million and $540 million for the year. Delays in U.S. certification could hinder its progress, with full FAA Type Certification unlikely until at least late 2026.

Overall, Wall Street holds a Moderate Buy consensus rating on Joby Aviation stock, with three buy, three hold, and one sell recommendation. The average price target currently sits at $8.86, suggesting the stock is fairly priced at this time.