Stocks to buy

JOBY Stock Analysis: This Flying Car Company Could Be Worth a Gamble in 2024

In the electric vertical takeoff and landing (eVTOL) world, Joby Aviation (NYSE:JOBY) stock remains a top stock I think long-term investors should focus on.

Based in California, Joby aims to create scalable eVTOLs for short-distance passenger and cargo transport. Recent partnerships in California, New York, and Dubai hint at Joby’s potential in the emerging industry. 

Securing the FAA’s Part 145 Repair Station Certificate marked a significant milestone, ensuring JOBY’s ability to maintain its eVTOL aircraft effectively. Collaborating with Dubai’s Road and Transport Authority for air taxi services by 2025 signifies Joby’s pioneering innovation and global presence. 

Although revenue still needs to materialize, Joby’s strategic moves suggest future prominence in the market. Here’s more on why it’s a top flying car stock I think long-term investors should have on their radar right now.

Latest Joby Updates

JOBY stock recently expanded its partnership with the U.S. Air Force, committing to supply two eVTOL aircraft for training and testing at MacDill Air Force Base in Florida. This agreement adds to Joby’s $131 million contract with AFWERX, marking the most considerable contract value in the eVTOL industry.

MacDill Air Force Base, housing various military units, hosted testing and training for Joby’s aircraft. CEO Joe Ben Bevirt highlighted the significance of the U.S. government’s early support. Joby’s electric air taxi offers eco-friendly travel with impressive speed and minimal noise.

Through AFWERX, the Air Force experimented with aircraft like Joby’s, avoiding hefty development costs. This funding enabled manufacturers to fly pre-certification, aiding design refinements and pilot experience insights. Lieutenant Colonel John Tekell expressed excitement about advancing vertical lift technologies with Joby’s aircraft.

Additionally, Joby partnered directly with DOD units at MacDill, deploying aircraft for logistics and various test missions. The company delivered the first of nine eVTOLs to Edwards Air Force Base ahead of schedule. Service members visited Joby’s California facility for flight training and explored diverse operational applications.

Joby is Working Hard and Smart

JOBY stock has positioned itself well for success by enhancing nationwide urban air mobility infrastructure. The company has additional partnerships in California and New York that should provide strong growth over a meaningful time horizon. These initiatives paved the way for the company’s upcoming air taxi service launch. Furthermore, Joby secured exclusive rights from Dubai’s Road and Transport Authority for a six-year air taxi operation starting in 2026.

Moreover, in February, the company announced the acquisition of a facility at Dayton International Airport, initiating hiring for initial manufacturing operations at this facility. The plant will support aircraft part manufacturing for Joby’s Pilot Production Line in Marina, California, with operations slated to start later in the year. Joby plans to develop facilities capable of producing up to 500 aircraft annually in Dayton, including a more giant greenfield factory. 

Despite being pre-revenue, Joby’s partnerships hint at long-term potential, supported by progress in type certification and a substantial cash balance exceeding $1 billion.

JOBY is a Shining Buy

Financial figures are crucial in analyzing stocks, especially for startups like JOBY. Despite being pre-revenue, its partnerships hint at long-term potential in the emerging sector. Advancements in type certification also indicate future opportunities. 

With a loss of over $513 million in 2023, Joby has a few years of conservative runway. Further equity raises could fund research and development.

So, for those with an investing time horizon longer than two years, this could be a stock to pick up on dips. And considering JOBY stock is now down roughly 50% from its peak during the middle of last year, I’d say now is a great time to consider adding or building a position.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.