Electric Air Mobility Recalibrates as Capital and Hybrids Take Hold

Joby’s capital raise and hybrid tests signal a maturing electric air mobility sector under tighter rules and investor scrutiny

2 Feb 2026

The electric air mobility industry is moving into a more sober phase, as companies contend with lengthy certification processes, tighter regulation and higher costs. After years of ambitious targets and eye-catching prototypes, leading groups are adjusting their strategies to reflect tougher market conditions. Joby Aviation, one of the sector’s most prominent players, illustrates that shift.

In early 2026, Joby said it planned to raise about $1.2bn through a mix of convertible debt and equity offerings. The move came as shares across advanced aviation companies had fallen, weighed down by regulatory delays and investor concern over cash burn. Joby’s announcement put short-term pressure on its stock price but highlighted the growing importance of balance sheet strength as companies move closer to commercialisation.

Alongside shoring up its finances, Joby is broadening its technological focus. The company is testing a hybrid aircraft that combines a turbine engine with electric propulsion, developed through a demonstrator programme with L3Harris Technologies. The aircraft is not intended for commercial sale. Instead, it is designed to test longer range and operational flexibility for potential defence, logistics and emergency response uses.

The approach reflects wider changes across the sector. Certification timelines for fully electric aircraft have stretched, charging infrastructure remains limited in many markets, and public investors have become less willing to fund projects with distant returns. As a result, electric aviation companies are looking for nearer-term revenue opportunities and technologies that can operate within existing systems.

Hybrid aircraft are increasingly seen as a practical bridge. They rely less on dedicated charging networks and may reach customers sooner, even if they offer fewer environmental benefits than fully electric designs.

Electric air mobility still faces significant hurdles, but expectations have shifted. Financial resilience, diversified technology and operational flexibility are becoming key competitive advantages. Companies that adapt to these realities are likely to shape how electric flight develops as the industry moves from vision to execution.