One air travel innovator is flying high today on news of a manufacturing expansion. Joby Aviation (NYSE:JOBY) stock is rising today after announcing plans to break ground on its first production facility. Located in Dayton, Ohio, this factory will employ nearly 2,000 workers. It is expected to produce 500 aircraft on an annual basis. Joby is investing $500 million in this project and has received $325 worth of incentives from Ohio’s government. If all goes according to plan, the new facility will be open and operational by 2025, with construction starting in 2024.
JOBY stock is surging today on the expansion news. This growth is likely to continue trending upward as the company moves forward with this important expansion. The electric vertical take-off and landing (eVTOL) market is booming right now, making this an excellent opportunity for investors.
What’s Happening With JOBY Stock
After a difficult week, JOBY stock is making up the ground it lost and is showing no signs of slowing down. As of this writing, it is up 7% for the day, but its trajectory suggests it will keep rising throughout the day. This positive catalyst isn’t coming a moment too soon. JOBY is still recovering from a highly volatile month. That said, the previously little-known stock has still risen a little over 80% over the past six months.
Now Joby is putting itself in an excellent position to secure an even share of the red-hot eVTOL market. The new facility will be built on a 140-acre plot of land near the Dayton airport. Local civic leaders are highly optimistic about the benefits that Dayton will reap as a result of this investment. Dayton Development Coalition president and CEO Jeff Hoagland spoke to the city’s local News Center 7 about this development. In his words:
“Today is a historic day in Dayton, Ohio. It is something that we’ve been working on for quite a while. But it’s something that we’re extremely proud of here in Dayton with it being the home of aviation in the first evolution of flight with the Wright brothers. And today, you know, with the third evolution, the flight with these electric, vertical, takeoff, and landing vehicles.”
It does seem fitting that a company focused on the next stage of aviation would be setting up shop in a city known for flight history. Joby is often recognized for its innovations in the eVTOL space by many experts who see its potential. InvestorPlace contributor Chris MacDonald reports that JOBY stock represents a “unique eVTOL pure-play” that investors shouldn’t ignore. He cites the company’s exposure to the air taxi market as a reason to bet on it. Earlier this month, Joby subsidiary H2FLY completed the historic premier test flight for its liquid hydrogen-powered electric aircraft.
Why It Matters
Flying cars used to be a trope in science fiction movies. Now they’re quickly becoming real, and that represents a real opportunity for investors to profit. JOBY stock may be one of the best plays that investors can make. Despite these positive catalysts lately, it still trades at less than $7 per share. However, if the company continues these expansion efforts, it likely won’t stay below the $10 mark for long.
As the eVTOL market continues to grow, the number of companies making flying cars will only rise. Joby is at the forefront of this movement, and it is a promising candidate to usher in the next phase of aviation.
On the date of publication, Samuel O’Brient 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.