JOBY Stock Alert: Joby Aviation Will Be Ready to Take Flight in 2025

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  • Shares of Joby Aviation (JOBY) stock are up slightly, by about 1%, in today’s session.
  • However, this company is in focus for investors, with a key milestone expected.
  • The company noted that it should be ready to launch its electric flying taxi service in 2025.
JOBY stock - JOBY Stock Alert: Joby Aviation Will Be Ready to Take Flight in 2025

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For investors in Joby Aviation (NYSE:JOBY), the focus has typically been on the company’s long-term prospects. For the electric vertical takeoff and landing (eVTOL) player, revenues and earnings will take some time to materialize, and most investors expect this. However, JOBY stock could see a boost from a key catalyst investors ought to know about.

In a recent conversation with The Associated Press, Joby’s CEO and founder JoeBen Bevirt, provided some color on his view of when flying taxis could become mainstream. His view is that hundreds or thousands of flying taxis could be taking people to and from airports and other key areas of major cities by 2025.

For a company that’s been posting steep losses, this sort of revenue visibility is a good thing. It’s worth noting that this isn’t the first time 2025 has been bandied about as a potential start date. However, the reiteration of this time frame does provide investors with some potential assurance that it may not necessarily be too early to invest in companies like Joby right now.

Let’s dive into what investors may want to make of this news today.

JOBY Stock Up Only Slightly, Despite Reiteration of Potential Launch Timeline

As it is with other high-growth sectors such as EVs, investors are increasingly demanding production timelines from companies and holding companies to their projected targets. Capital is growing increasingly scarce, given the range of higher-yield options available to investors today. Thus, visibility to a revenue and profitability timeline is something that companies like Joby appear to be eager to provide.

In some respects, Joby may be sandbagging its potential, considering the company has already delivered its first eVTOL to the U.S. Air Force last month. That said, the commercial launch of the company’s air taxis, which would be used for more regular intra-city trips, is where the majority of the focus is right now. If the company is able to transport passengers from A to B much faster than, say, a ride-hailing application, perhaps there’s a premium price consumers would be willing to pay for this service. I’d count myself in such a cohort.

The company says that its focus right now is on training pilots and building out the infrastructure necessary to grow its business. I think this industry is coming, and I’m excited about it. We’ll have to see how things pan out (there is competition in this space, to be sure). But this could certainly be the next big thing everyone’s talking about — maybe even sooner than 2025.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/joby-stock-alert-joby-aviation-will-be-ready-to-take-flight-in-2025/.

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