Shares of Joby Aviation (JOBY) plunged 18% after announcing a $1.2 billion capital raise. The offering includes $600 million in convertible notes and 53 million shares at $11.35, 15% lower than the previous close. Despite the drop, stock is up 130% from its low.

Investors should see this as a buying opportunity, with convertible notes carrying a 0.75% coupon and a conversion price of $14.19 per share, a 25% premium. Joby had $978 million in cash before the raise, indicating strong liquidity. The stock is oversold, with potential for a rebound.

Joby Aviation plans to double manufacturing capacity by 2027 and has U.S. and UAE regulatory approvals in sight. Options traders predict a 23% rise to $13.68 in the next three months. Analysts see potential for 10% upside with a mean target of $12.14, despite the recent pullback.

Read more at Yahoo Finance: Should You Buy the Dip in Joby Aviation Stock?