Increased Interest And Hedging CostsThe convertible note structure raises interest expense and hedging costs, reducing financial flexibility for funding certification and production ramp-up.
Regulatory And Certification UncertaintyUncertainty around the cadence of FAA piloted tests, detailed certification steps, and selection for federal pilot projects creates execution risk and supports cautious analyst ratings.
Shareholder Dilution From FinancingJoint equity and convertible note transactions increase shareholder dilution, which has led analysts to lower price targets and temper upside expectations.