History repeated itself for two firms developing an eVOL (all-electric, vertical take off and landing) aircraft. Shares of Joby Aviation (JOBY) and Archer Aviation (ACHR) spiked, only to plunge again.
Momentum speculators bet that Tesla’s (TSLA) announcement would include an eVOL. Instead, the electric vehicle giant introduced cheaper Model Ys. On Oct. 7, Tesla failed to announce any collaboration with either Archer or Joby.
Joby took advantage of the stock’s rise by underwriting an offering of 30.5 million shares at $16.85 a share. That would raise nearly $515 million in proceeds. JOBY stock has a small short interest of 6.37%. Bears are betting more heavily against ACHR stock. The short interest is 15.72%.
At the end of last week, Joby closed at a market capitalization of $14.43 billion. Joby stock nearly doubled in the last year. Archer Aviation closed at a $7.72 billion market cap. Shares tripled in the last year.
Your Takeaway
The eVOL sector is still in the development phase. Speculators will likely lose interest in both companies. The chances are high that they will sell the stock before the share price falls by more. The stock market’s all-time high risks are coming to an end. That would sink companies that do not have any revenue or profits.
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