Shares of Joby Aviation Inc. (JOBY) were having a rough Tuesday, down about 6% as of publication. But here’s the thing: it probably wasn’t really about Joby. The broader market was in a sour mood, with the Nasdaq down over 1.5% and the S&P 500 off more than 1%. When the market decides it doesn’t like risk, it tends to sell first and ask questions later—especially for companies like Joby that are still in the pre-profit, building-the-future phase.
Tuesday’s action had all the hallmarks of a classic “risk-off” day. Market breadth was weak, with nine sectors declining and only two advancing. Defensive areas like Utilities were in the green, while growth-heavy tech lagged. That’s generally a tough backdrop for speculative innovators. So, while Joby’s stock took a hit, the catalyst seemed more about the market’s overall tone than any specific bad news from the company itself.
A New Partnership to Navigate the Skies
In fact, Joby had some actual news Tuesday—and it was arguably positive. The company announced a partnership with Air Space Intelligence (ASI) to work on integrating electric air taxis into U.S. airspace. The idea is to combine Joby’s eVTOL (electric vertical take-off and landing) aircraft with ASI’s Flyways AI platform to improve air traffic coordination. Basically, they’re trying to make sure that when air taxis eventually take off in larger numbers, the air traffic control system can handle it without turning into a chaotic mess.
Joint demonstrations are planned for later this year, with initial results expected by the end of 2026. The effort aligns with the FAA’s next-generation air traffic control initiatives. For a company whose entire business model depends on getting regulatory approval to fly at scale, this kind of collaboration is a meaningful step forward. It’s about building the infrastructure, not just the aircraft.
The Short Sellers Are Paying Attention
Meanwhile, the short sellers have been active. Short interest in Joby climbed to 84.65 million shares in the latest reporting period, up from 77.81 million. That represents about 11.43% of the company’s public float. Based on average daily trading volume, it would take short sellers roughly 3.44 days to cover their positions. That’s not an extreme level, but it’s notable—it means there’s a decent-sized group of investors betting the stock will go lower.
Earnings on the Horizon and What Analysts Think
Joby is scheduled to provide its next financial update on May 6, 2026 (estimated). The consensus expects a loss of 20 cents per share, which is wider than the loss of 11 cents in the prior period. On the revenue side, however, estimates call for $19.70 million, up from essentially zero. That revenue jump reflects the company’s transition toward commercial operations.
Analysts, on balance, are still bullish. The stock carries a Buy rating with an average price target of $12.50. But there have been some recent adjustments: JP Morgan has an Underweight rating and lowered its target to $7.00, while Needham maintains a Buy but trimmed its target to $18.00. On the more optimistic side, HC Wainwright & Co. upgraded the stock to Buy with an $18.00 target. So, opinions vary, but the average view remains positive.
ETF Exposure and Why It Matters
Joby isn’t just a standalone stock; it’s also a holding in several exchange-traded funds (ETFs). It has a 3.23% weight in the SPDR S&P Transportation ETF (XTN), a 3.08% weight in The Free Markets ETF (FMKT), and a 3.40% weight in the WisdomTree Battery Value Chain and Innovation Fund (WBAT). This ETF exposure is significant because large inflows or outflows from these funds can trigger automatic buying or selling of Joby shares, adding an extra layer of volatility unrelated to company-specific news.
As of Tuesday, Joby Aviation shares were down 5.98% at $8.18. The day’s decline seemed more about the market’s risk-off sentiment than any fundamental change in Joby’s story. Between the new AI partnership for air traffic integration and the upcoming earnings report, there’s plenty for investors to watch—even on a down day.
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