Multiple, recent events indicate that the medium-term outlook of eVTOL maker Joby’s (JOBY) remains solid. Among these positive developments are the company’s apparent ability to raise $1.2 billion, and the purchase of a sizeable amount of its stock by Cathie Wood’s funds. Further, as I pointed out in a prior column, the company intends to greatly increase its manufacturing capacity in America and signed a Memorandum of Understanding with Saudi Arabia that could result in a multiple-billion-dollar deal.
Finally and importantly, the company reportedly remains well-positioned to initiate an air-taxi service in Dubai this year.
In light of these points, along with its relatively low market capitalization, I believe that risk-tolerant growth investors should consider buying the shares.
A Huge Capital Raise and Cathie Wood’s Purchase of JOBY Stock
In late January, Joby disclosed that it would raise $1.2 billion from issuing convertible notes and selling shares of JOBY stock. The firm noted that the deals were “scheduled to settle on February 2, 2026.” Since Joby does not seem to have disclosed any issue with the transactions, they likely were completed according to plan.
One of the most noteworthy aspects of the deals is that the convertible notes carry an extraordinarily low annual interest rate of 0.75%, suggesting that the investors who bought the notes have a tremendous amount of confidence in the firm. And of course, the transactions are poised to provide Joby with much of the funds that it needs to manufacture its aircraft and launch its operations.
Pouncing on a retreat sparked by the sale of JOBY stock, Cathie Wood’s ARKQ (ARKQ) and ARKX (ARKK) funds obtained roughly 780,000 shares of JOBY stock on January 29. While Wood’s ability to make good long-term stock picks is not particularly impressive, I find that she often buys stocks on weakness that rebound in the medium term. Therefore, her decision to buy JOBY stock on weakness recently may indicate that the stock will perform well over the next year or so.
Two New Factories, a Potential Big Deal With the Saudis, and Launching Service in Dubai
In December, Joby disclosed that it would increase its manufacturing capacity to four aircraft per month in 2027. Among the steps that the firm is taking to reach this goal are expanding a California plant (the latter step was completed in July), launching the manufacturing of propeller blade production in Ohio, and buying a new factory in Ohio. The moves indicate that Joby is very confident that there will be strong demand for its eVTOLs from consumers and/or companies in the long term.
Indeed, CEO JoeBen Bevirt said in a statement in December that, “Given the maturity of our air taxi program and the significant demand we’re seeing for our aircraft, we’re confident now is the right time to invest in the equipment, facilities and people required to accelerate production.”
In my prior column, I noted that Joby had signed a Memorandum of Understanding with Saudi Arabia. As a consequence of that agreement, the company could sell 200 eVTOLs to the country and obtain about $1 billion of revenue from servicing them, Joby has reported.
Finally, Joby intends to launch service this year in Dubai, where it’s slated to have an air-taxi monopoly for six years. Assuming the company is able to meet that timetable and provide a successful air-taxi service in the Mideast city, investors could very well start to believe that Joby may indeed be poised to become a top air-taxi player globally. And if that occurs, JOBY stock is likely to rally a great deal.
The Bottom Line on JOBY Stock
Given the company’s multiple, major, positive catalysts and tremendous long-term potential, I believe that its current market capitalization of $10.2 billion is quite low, making the shares attractive for growth investors.
This article is intended to be informational only; it is not financial advice.
