Deutsche Bank has ‘mixed reactions’ to Joby Aviation capital raise

After Joby Aviation (JOBY) announced a $500M private placement from Toyota (TM), Deutsche Bank analyst Edison Yu has “mixed reactions,” noting that on the positive side, this provides more runway for Joby as pro-forma cash should be around $1.2B now exiting Q3, based on the firm’s estimates. Also, since Toyota is taking the entire allocation, the firm notes that Toyota will become the largest single shareholder at 178M shares, or a greater than 20% stake, and expects minimal risk of selling pressure given the automaker’s deep strategic role. On the negative side, the timing and amount confirm the firm’s concerns that Joby needs a massive amount of capital to actually make it through certification and commercialization. Even with this fundraising, the firm suspects another $300M-$500M may be needed late next year or in early 2026, and it suspects management likely could not find institutional money at large enough levels. The firm maintains a Sell rating and $4 price target on Joby shares.