JOBY Aviation (NYSE:JOBY) is a leader in electric vertical takeoff and landing aircraft, making waves in air mobility. This flying car stock, now around $7.31 per share, offers long-term growth in the emerging air taxi market.
That said, Joby can be the next big thing for investors looking to capitalise on the future of transportation. JOBY is taking off with a competitive edge and electrifying approach to eVTOLs that sets them apart from other players in the space.
JOBY’s Expansion
Joby Aviation, a California-based startup developing electric aircraft, is nearing a decision on its factory location, with Ohio and North Carolina as the top contenders.
The company, backed by Toyota and partnering with Delta Air Lines for airport travel services, is advancing its electric vertical take-off and landing aircraft for commercial and defense use, initially targeting New York and Los Angeles.
Joby, currently based in a 120,000-square-foot facility in Marina, California, is in the process of selecting a location for a 580,000-square-foot aircraft manufacturing plant.
Various states, including California and Michigan, have been vying for this opportunity. Joby’s CEO, JoeBen Bevirt, noted strong interest from multiple states during the second-quarter earnings call.
While details remain under wraps, the company is reportedly considering investing up to $50 million to expand the Marina facility, potentially doubling its size to over 200,000 square feet and adding around 600 jobs.
Marina City Manager Layne Long confirmed ongoing discussions about expanding Joby’s operations at the airport.
JOBY Fundamentals
Institutional investors are showing confidence in Joby Aviation, with a 30% increase in 13F holdings and a 94% surge in new positions according to Whale Wisdom data.
The declining put/call ratio suggests reduced bearish sentiment. Joby’s robust financial position, ending Q1 2023 with $978 million in cash and receiving an additional $180 million in May, is attractive to big money investors compared to its peers.
JOBY Aviation, backed by $700+ million in funding and key partnerships, is poised for success.
Despite a Q2 loss of $286 million because of aircraft development costs, the company remains financially strong with nearly $1.2 billion in cash and investments, supported by recent institutional investments.
Cash usage is typical for growth stocks like Joby, but it’s manageable without immediate liquidity concerns.
What Now
Now that you understand the risks and growth potential, keep in mind Joby’s slow commercialization and recent stock rally. For risk-tolerant investors, Joby offers multi-bagger potential with patience for milestones.
Assuming the plan unfolds smoothly, commercial operations should begin in 2025, requiring investor patience because of the timeline and stock rally.
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 InvestorPlace.com Publishing Guidelines.
