Joby Aviation Stock Down 62% from High; Reverse Stock Split Seen as Unlikely

Joby Aviation's stock has fallen 62% from a recent high of $20 to about $7.58, well above the NYSE's $1 minimum listing requirement.

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Industry impact

The selloff highlights investor caution toward eVTOL developers even as certification and commercialization efforts continue across the emerging air-taxi segment.

Shares of eVTOL aircraft maker Joby Aviation have fallen 62% from a recent high of $20 per share to approximately $7.58, prompting questions about a possible reverse stock split, which analysts say is unlikely in the near term. Joby's decline is steeper than that of rival Archer Aviation, whose stock has dropped 58% from its all-time high, though Joby's current price remains well above the NYSE's minimum listing requirement of $1 per share. The stock has traded lower before, hitting $3.18 in late 2022 and $4.54 in mid-2024, without triggering a reverse split.

A reverse stock split consolidates existing shares into fewer, higher-priced shares and is typically used to prevent a stock from falling below exchange listing thresholds, unlike a forward split such as a 2-for-1, which increases share count while reducing individual share price and is generally viewed as a signal of management confidence. A 2019 study by Pomona College economics professor Gary Smith found that forward stock splits tend to produce positive shareholder returns, signaling board confidence, while reverse splits carry the opposite stigma.

Joby founder and CEO JoeBen Bevirt cited "meaningful progress on certification, partnerships, infrastructure, and commercial readiness" in the company's most recent earnings release, and analysts note a reverse split would contradict that message of confidence, making one unlikely anytime soon.