Joby Aviation (NYSE:JOBY) is a company that’s relatively unknown today but could become a household name someday. If flying cars populate the skies in the coming years, Joby Aviation will have been a pioneer in a fast-emerging industry and JOBY stock will probably be a multi-bagger.
Joby Aviation is headquartered in California, and the company builds electric vertical takeoff and landing aircraft. Informally, people sometimes call these aerial vehicles flying cars or flying taxis.
Is Joby Aviation on the cusp of a revolution in modern flight technology? My instincts say yes, and I suggest early investors will enjoy the lion’s share of the gains.
JOBY Stock Pulls Back, but Prepare for Liftoff
Back in early August, Joby Aviation provided details of its operational progress in a quarterly shareholder letter. Also, the company made history with the “world’s first piloted flight of a liquid hydrogen-powered electric aircraft.”
Even as Joby Aviation marked a significant milestone for clean-fuel piloted flight, the company’s critics may have felt that JOBY stock flew too high, too fast. Specifically, the Joby Aviation share price soared from $3.50 in January to over $10 in July.
Around that time, JPMorgan analysts reportedly downgraded JOBY stock from “neutral” to “underweight.” They cited a “largely overblown rally” in the shares, and I understand their concerns.
However, since that time, JOBY stock has pulled back to $6.50. This presents an opportunity for investors to get in at a more favorable, not-too-“overblown” share price.
Joby Aviation Marks More Milestone Moments
If you’re going to invest in an eVTOL aircraft specialist (and there aren’t many publicly listed ones in 2023), Joby Aviation is a great choice. Time and again, the company continues to push the envelope in the flying taxi field.
For instance, Joby Aviation selected Dayton, Ohio, as the site for its first scaled aircraft production facility. This will be a vast, 140-acre site where Joby Aviation’s production facility will be “capable of delivering up to 500 aircraft per year.”
Joby Aviation recently delivered the first electric air taxi to the U.S. Air Force. This delivery was part of Joby Aviation’s $131 million contract with the Department of Defense.
Impressively, Joby Aviation delivered an aircraft to Edwards Air Force Base “approximately six months ahead of the expected 2024 delivery date.”
Buy the Dip in JOBY Stock
Was the rally “overblown” when the Joby Aviation share price soared to $10 this summer? Maybe it was, but a recent pullback means that investors can take a share position at a lower price point.
Meanwhile, Joby Aviation is making headway in the eVTOL aircraft field, which could be an explosive-growth industry in 2024 and beyond.
Therefore, I recommend buying JOBY stock on the dip in anticipation of a return to $10. After that, get ready for significantly higher prices – as they say, the sky is the limit.
On the date of publication, David Moadel 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.
