Among the volatile electric vertical takeoff and landing companies investors are watching right now, Joby Aviation (NYSE:JOBY) remains one of the top options on watch.
The company has seen a number of catalysts and headwinds play out this year, resulting in some serious volatility. For traders, that’s a great thing. For long-term investors, not so much.
Since peaking in June, shares of JOBY stock are down nearly 50%. However, this is a stock that’s still up nearly 100% from where it started the year. Thus, this is among the most intriguing directional bets investors can make on this sector right now.
Recent JOBY News
Joby Aviation recently delivered its electric vertical takeoff and landing (eVTOL) aircraft to the U.S. Air Force at Edwards Air Force Base, ahead of schedule. This marks the first eVTOL for Air Force testing in the U.S., with flight tests to follow in the coming months. A second aircraft will join in early 2024.
This Joby eVTOL, the first from their California production line, will serve for pilot and personnel training, including logistics and missions. Testing will take place in a dedicated Air Force facility at the base.
JoeBen Bevirt, CEO of Joby, expressed pride in their eVTOL joining the historic aircraft that showcased their capabilities at Edwards Air Force Base.
He acknowledged the crucial support from the DOD and NASA, highlighting the significance of public-private partnerships in advancing aviation technology.
How This News Affects JOBY Stock
Joby Aviation’s stock surged 8% to $6.69 following the early delivery of its aircraft to Edwards Air Force Base, surpassing the expected 2024 date by about six months.
This eVTOL aircraft company, focused on commercial passenger service, plans to showcase various logistics missions, such as cargo and passenger transport, at the base. Both Joby and U.S. Air Force personnel will operate these on-base operations.
In partnership with the U.S. Air Force, NASA will research integrating these aircraft into national airspace, benefiting the air taxi industry.
Joby’s aircraft, operational at Edwards AFB, is part of its $131 million contract with the U.S. Air Force, with a total potential contract value of $163 million.
JOBY and NASA
The aircraft delivery signifies a significant point in the long-standing partnership between Joby and the Air Force, initiated in 2016 with support from the Defense Innovation Unit.
NASA is also entering the collaboration through its AFWERX program, contributing pilots, researchers, and equipment to advance air mobility technology.
NASA’s collaboration with Joby and AFWERX involves hands-on experience with eVTOL technology to assess its integration into national airspace. This research focuses on handling qualities, autonomy, and airspace integration, driving advancements in the eVTOL industry.
Joby’s air taxi joins the Agility Prime mission, alongside other AAM manufacturers like Beta Technologies, Jump Aero, and Archer Aviation. Joby’s eVTOL, being the first to arrive and ready for testing, secures a leading role.
Colonel Elliott Leigh, AFWERX director, sees Joby’s aircraft at Edwards AFB as a significant step toward Agility Prime’s objective of operational transformative vertical lift by 2023.
Keep Your Eyes on JOBY
While the stock hasn’t surged yet, it’s poised for growth. With FAA certification and plans for passenger operations by 2025, Joby’s partnership with Delta Air Lines for home-to-airport transportation services, starting in New York and Los Angeles, is a promising venture.
Delta has invested $60 million upfront, with potential for up to $200 million as they hit milestones.
For those eyeing long-term growth in a budding industry, a modest stake in Joby Aviation could be worth exploring, given its speculative potential. Nonetheless, it’s vital to prudently size your position to mitigate the uncertainty and potential capital loss inherent in this niche market.
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.
