Joby Aviation (NYSE:JOBY) is one hyper-growth stock I continue to keep on my watch list. Indeed, there are plenty of reasons for this, as I’ve pointed out in my previous pieces.
Whether it’s the long-term growth potential of the electric vertical takeoff and landing (eVTOL) market, or Joby’s compelling position within this space, there are reasons why many prominent growth investors are stepping into JOBY stock, and that of its peers. I think that this is a relatively intriguing company worth considering, with a number of key catalysts worth noting.
Most recently, Joby announced the company has officially delivered an air taxi to the U.S. Air Force for evaluation, while NASA is exploring its integration into civilian airspace. The eVTOL aircraft is part of an AFWERX Agility Prime program contract. NASA and AFWERX collaborate to assess the vehicle’s potential in national airspace.
JOBY shares rise as the eVTOL company completes pilot-inclusive flight tests. Four pilots have flown on Joby’s pre-production prototype, marking a transition from mostly remote testing via ground control stations (GCS). These tests yield performance data for future assessments.
That said, owning JOBY stocks is a bit of a gamble. The eVTOL market is still in its early phase, but the company can benefit from increased investment and partnership deals over time. Let’s discuss more of Joby’s potential below.
JOBY Recent Milestones
Joby Aviation stands out as a prime investment option in the eVTOL aircraft sector. The company consistently advances its presence in the flying taxi industry, exemplified by its choice of Dayton, Ohio, for a substantial aircraft production facility spanning 140 acres. This facility has the capacity to produce 500 aircraft annually, showcasing Joby’s commitment to innovation.
Joby Aviation achieved an early milestone by delivering its first electric air taxi to the U.S. Air Force as part of a $131 million contract.
Notably, the delivery to Edwards Air Force Base occurred around six months ahead of the original 2024 target date, demonstrating Joby’s efficiency.
JOBY Onboards First Pilots for Test Flight
Joby’s flight test team recently conducted initial tests of its electric air taxi over the company’s Pilot Production Facility in Marina, California. Chief Test Pilot James “Buddy” Denham, who led the onboard testing campaign, described the aircraft’s flight as “simple and graceful.”
Denham expressed his privilege to be in the cockpit after over 400 ground-based take-offs and landings. The pilots conducted a series of maneuvers to simulate everyday flight operations, including thrustborne hovers and transitions to semi-thrustborne flight.
The program not only tests the aircraft but also prepares for certification with the FAA and collaborations with the US Department of Defense. Testing is happening at Edwards Air Force Base, where realistic scenarios are being simulated. In the meantime, Joby is getting ready for commercial sales by building a $500 million factory in Ohio to produce 500 aircraft annually.
The Exciting Future of eVTOL Aircraft
Joby Aviation, a key player in eVTOL technology, obtained FAA approval and plans to launch commercial passenger services by 2025. Its partnership with Delta Air Lines targets urban transportation transformation, focusing on cities like New York and Los Angeles.
While Joby stock experienced short-term declines due to a Q2 loss of $286 million (up from $49 million last year), it maintains a substantial cash reserve of nearly $1.2 billion. Higher operational expenses and reduced income contributed to these losses. Nevertheless, Joby’s strong partnerships and expanding customer base position it as a top space stock to consider. Currently, I hold a cautiously optimistic view of this stock, but it’s one I’d put in the “monitor closely” bucket for those looking to own this stock at this point in the economic cycle.
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.
