Why Joby Aviation Stock Is Falling After Hours

Joby Aviation Inc JOBY shares are falling in extended trading Tuesday after the company announced it entered into an equity distribution agreement.

What Happened: In a new regulatory filing released after the market close on Tuesday, Joby announced an offering agreement under which the company may sell up to $300 million worth of common stock.

Under terms of the agreement, managers Morgan Stanley and Allen & Company will sell Joby common stock from time to time based on instructions from the company. Joby will pay the managers a 3% commission on gross sale proceeds.

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Joby reported financial results for the third quarter at the beginning of November. The company said it ended the period with $710 million in cash and short-term investments.

Joby is not due to report quarterly financial results again until February. Analysts currently expect the company to report a loss of 19 cents per share and revenue of $57,250.

JOBY Price Action: Joby shares were down 8.78% in after-hours, trading at $7.79 at the time of publication Thursday, per Benzinga Pro.

Photo: Courtesy of Joby Aviation.