Joby Aviation Inc. said on Wednesday that it had raised $180,000,000 in private investments to help it fund its operations until the electric air taxis it plans can be launched.
Joby announced the sale of almost 44 million shares to Baillie Gifford & Co.
Shares are expected to be sold by the end this week, at the closing price of Wednesday of $4.10. Joby's (NYSE:JOBY), the company's stock, hit a low of $3.15 by 2022. This is down 56% since its August high of $7.15.
Joby made the announcement just days after the U.S. Department of Defense announced it would give $55 million to extend a contract for the delivery and operation of up to nine of the five-seater electric vertical takeoff landing (eVTOL), aircraft, to the Air Force. The first two aircraft will be delivered to Edwards Air Force Base, Southern California, early next year.
Joby has announced that it is close to completing the work required for the third stage of five of the certification process needed to get its aircraft approved by the Federal Aviation Administration. It is planning to start commercial service by 2025.
Baillie Gifford's investment was announced the same day Joby reported a net loss for its first quarter of $113.4 millions, which is 82% higher than last year. Joby attributes the higher loss to a drop of $45.7 million in investment income and a rise in operating expenses by $5.4 million.
Joby reported that it ended the first three months with $978 millions in cash and short term marketable securities. This does not include the $180,000,000 investment announced on Wednesday.
In a press statement about the first quarter results, Joby CEO JoeBen Bevirt stated that "we've already achieved significant milestones in terms of production, testing, and funding. I'm extremely excited about our progress."