Investors may soon be taking to the skies thanks to Joby Aviation. Today, inside sources shared that Joby has hired investment banks to solicit offers from special purpose acquisition companies. So what do you need to know now about a potential Joby Aviation SPAC merger?
For unfamiliar investors, consider Joby one of the poster children for the next generation of transportation. In the future, consumers will use a mobile app to hail a ride in a flying, all-electric taxi. According to the company, this business model offers a greener and quicker alternative to driving. As Joby puts it, its flying taxi ride-hailing service will also be relatively affordable.
Now it seems that a Joby Aviation SPAC merger is around the corner. At this point, no blank-check companies have been named. Joby executives have also not confirmed the news.
However, the SPAC merger rumors are still exciting. In the decade since its founding, Joby has raised more than $800 million in private funding. Last year, its valuation hit $2.6 billion thanks to the backing of big names like Toyota (NYSE:TM) and Intel (NASDAQ:INTC).
So what else should you know about the business ahead of a potential Joby Aviation SPAC merger? There are two key things to watch. The first is that the company is making progress toward its dream of a flying taxi fleet. Although there are not too many details available now, Joby says it hopes to release an all-electric, zero-emission aircraft by 2023 for ride-hailing use. On its way, it also picked up flying taxi assets from ride-hailing leader Uber (NYSE:UBER). Earlier in 2020, Joby Aviation announced it would acquire the Uber Elevate brand. In addition, Uber invested $75 million in Joby.
Another key detail? Joby users will be able to book flights via the Uber app.
What to Know About a Joby Aviation SPAC Merger
Although the Joby Aviation SPAC merger is certainly unique, it follows in the footsteps of another air mobility deal. Last month, Blade Urban Air Mobility agreed to merge with Experience Investment (NASDAQ:EXPC). Since then, EXPC stock has gained 50%.
So what should you do here? Without more information about a potential merger, investors do not have a ton of options with Joby Aviation. However, InvestorPlace analyst Luke Lango is bullish on Blade. As he tells it, EXPC stock and the Blade SPAC merger will be the Uber of the skies. Once these helicopter trips become more accessible, they will surge in popularity. In fact, he thinks Blade could one day be a $10 billion company.
Keep a close eye on this news, and wait for more confirmation. A Joby Aviation SPAC merger promises to play into several emerging trends. The blank-check company behind such a deal could certainly take off. And in the meantime, add EXPC stock to your watch list.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.