Joby Aviation is the biggest company in the electric vertical Take-off and landing (EVTOL) industry, with a market cap of over $4 billion and over $825 million in cash and short-term investments.
Launched in 2009, the company has developed aircraft that it hopes will dominate the flying car industry. It went public in 2021 through a SPAC merger, and its market cap soared to over $8 billion.
Analysts believe that eVTOL companies have a chance to change urban transport. Unlike helicopters, they are silent and can land almost anywhere. They are also relatively affordable and could make short-haul flights affordable, especially in highly populated cities in countries like Brazil, China, and Japan.
Joby Aviation stock was trading at $6.15, up by more than 35% from its lowest point this year. It remains about 65% from its highest level in 2021.
Positive hype
Joby Aviation’s positive hype jumped after Toyota, one of the biggest companies in the auto industry, invested $500 million in the company, bringing its total investment to $894 million.
Toyota hopes that Joby Aviation will use these funds in its certification and in commercial production. Its other investors are companies like Uber, Intel, JetBlue, and Baillie Gifford.
The company has received certification to operate air taxis in the United Arab Emirates (UAE), one of the biggest markets. For example, a trip from Duba’s airport to Palm Jumeira will take less than 10 minutes. It usually takes 45 minutes by road.
Joby Aviation has also received most certifications in the United States, and analysts expect that it will get the final certification either this year or in 2025. It has already produced four aircraft that are in the testing process.
It has passed three stages of FAA authorization, with the fourth and final stages expected to happen in 2024 and 2025.
The company aims to start commercialization in 2025, earlier than other companies in the industry like Archer Aviation and Lilium. By doing that, it will have a first-mover advantage, which will help it grow its market share.
Joby Aviation has expanded its business to include hydrogen-powered aircraft that has a 561-mile range.
The company has a relatively strong balance sheet, especially with the $500 million investment from Toyota.
Joby Aviation has continued to narrow its losses. Its net loss came in at $123 million in the last quarter, a big improvement from the $286 million it lost in the same period in 2023.
Negative hype
There are concerns about the viability of the EVTOL industry because it is untried and untested.
The company will likely raise cash in the coming years as it starts ramping up production.
It will also make substantial losses for a while, as we have seen with companies like Rivian, Lucid Group, and Nio.
Joby Aviation will face substantial competition from companies like Archer Aviation and Lilium, which have substantial sums of money on their balance sheets.
Summary on Joby Aviation stock
Joby Aviation stock has remained under pressure in the past few years, dropping by over 64% from its highest point in 2021.
It has remained below the 50-week and 25-week Exponential Moving Averages (EMA). On the positive side, it has formed a double-bottom chart pattern, shown in purple, with a neckline of $12. A double-bottom pattern is one of the most bullish signs in the market.
Therefore, the stock seems like it has a favorable risk and reward metrics. If this happens, it could jump to the next point at $12, which is about 96% above the current level.
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