Kerrisdale Capital goes short on Joby Aviation over earnings concerns

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- Kerrisdale Capital said on Tuesday it had taken a short position on Joby Aviation over profitability concerns, sending the electric aircraft maker's shares down nearly 5%.California-based Joby said Kerrisdale has a"vested interest" in lowering its share price.

Joby plans to operate like a rideshare app, unlike other electric vertical takeoff and landing peers that intend to sell their aircraft to customers including airlines and logistics firms. Kerrisdale warned of higher operating costs as the company's electric aircraft are likely to offer lower range and power than traditional helicopters.

The U.S. aviation regulator in June gave Joby, which is backed by investors such as Delta Air Lines, Toyota Motor and Intel Corp, the nod to flight-test its electric air taxi. In its most recent quarter, the company posted a bigger-than-expected loss, citing expenses related to certification and early manufacturing operations.

 

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