The demand for Joby Aircraft’s (JOBY) eVTOL (electric vertical take-off and landing) aircraft is likely to be very strong, while the company’s technology has been largely validated by its impressive list of partners. Also importantly, these partners are likely to help JOBY successfully mass produce its eVTOLs and sell high numbers of its aircraft, ultimately enabling it to become quite profitable.
And finally, the start-up is making impressive progress on its technical roadmap.
For all of these reasons, along with JOBY’s attractive valuation, I believe that investors looking for growth names in the transportation sector should consider buying JOBY stock.
Strong Demand and Validated Tech for Joby
Judging by the impressive deals and partnerships that JOBY has already racked up, the demand for the company’s eVTOLs is likely to be quite impressive.
Most recently, Toyota (TM), as part of a previously announced deal, put $250 million into Joby, the latter firm announced on May 28. And Delta Airlines (DAL) has already invested $60 million in Joby and may put as much as $140 million more into the start-up in the future.
Launching an alliance in March with Joby was Virgin Atlantic. The two companies plan to collaborate on an air-taxi service in the UK., And finally, JOBY has delivered two of its aircraft to the Pentagon for tests, while the firm has made a deal with Dubai’s Road and Transport Authority, enabling the start-up to begin providing air-taxi services in the Middle Eastern country Joby intends to launch the latter service in early 2026.
I doubt whether all of those partners would be putting so much time, money, and effort into Joby’s eVTOLs if the demand for them was not likely to be quite powerful and if the company’s technology was also not strong. Additionally, Toyota and Delta can help Joby mass produce and launch its eVTOLs, given Toyota’s manufacturing expertise and Delta’s vast experience with managing aircraft.
And, as I pointed out in a previous post, eVTOLs can make trips to airports from cities much shorter, preventing travelers from losing “a great deal of time and (suffering) some aggravation”
Consequently, from a common-sense perspective, I expect many consumers to utilize Joby’s air-taxi services.
Technical Progress
During Joby’s recent earnings call, held on May 7, the company reported that it has extensively and successfully tested its aircraft’s ability to transition from flying vertically to flying horizontally. Further, the company said that it had carried out many test flights in the first quarter, with the number of such flights reaching “as many as eight per day.”
And the aircraft builder noted that in June it intends to take possession of its second factory.
Also importantly, Joby estimates that it’s a year away from starting type inspection authorization (TIA) flights under the auspices of the the FAA. According to the company, “TIA testing is considered the final phase of the type certification process, which paves the way for an aircraft to begin commercial passenger operations.”
The Bottom Line on JOBY Stock
Given Joby’s impressive list of partners, the partners’ obvious, strong interest in its eVTOLs, the likely high, overall demand for the aircraft, and the company’s tremendous progress on its technical roadmap, I view the stock’s current market capitalization of about $6.6 billion as quite low and attractive.
*This article is intended to be informational only; it is not financial advice.
