Do you have your parachute ready? Without a doubt, it’s risky to invest in electric vertical takeoff and landing vehicle manufacturer Joby Aviation (NYSE:JOBY). Yet, my JOBY stock analysis reveals that the potential reward justifies the risk. Joby Aviation is making steady progress toward the dream of putting air taxis in the skies, not just in North America but around the world.
Joby Aviation stock may have stalled out during the past six months. That’s not a reason to just give up on Joby Aviation, though. I encourage investors to play the long game; think of it as a transcontinental flight that will take some time but will definitely be worth it.
Steady Progress for Joby Aviation
Investors need to be patient. Remember, it’s all about the baby steps. Joby Aviation won’t achieve the full commercialization stage in North America tomorrow or next week.
What’s important is that Joby Aviation is making progress. For instance, the company recently earned a Part 145 Repair Station Certificate from the Federal Aviation Administration. This may be a historic moment, as Joby Aviation is “believed to be the first eVTOL developer to receive a Part 145 Certificate from the FAA.”
This certification will enable Joby to “perform maintenance, repair, and overhaul services on” the company’s aircraft once Joby is “certified for commercial operations.”
The FAA approved a certification plan for Joby Aviation’s eVTOL propulsion system. According to Didier Papadopoulos, President of Aircraft OEM at Joby Aviation, the company now has an “approved path across our certification program for all of the structural, mechanical, and electrical systems of our aircraft.”
Joby Aviation Spreads Its Wings
Figuratively speaking, Joby Aviation is spreading its wings as the company seeks to establish a presence beyond America’s borders. For example, Joby Aviation disclosed a deal to help build eVTOL “vertiports” in Japan.
Japan isn’t the only destination on Joby Aviation’s itinerary, however. In a fresh development, Joby Aviation signed an agreement with the government of Dubai, which is in the United Arab Emirates (UAE).
There, Joby Aviation will launch air-taxi services by early 2026, and will target initial air-taxi operations “as early as 2025.” This could establish Joby Aviation as a monopoly in the region, since the arrangement gives Joby the “exclusive right to operate air taxis in Dubai for six years.”
Clearly, Joby Aviation is a risk taker, but that’s not necessarily a bad thing. It remains to be seen whether the eVTOL industry is successful in Dubai. If the industry “takes off” in this region, however, Joby Aviation could eventually generate powerful, ongoing revenue.
JOBY Stock Analysis: A Small Position Is Perfect
My previous JOBY stock analysis was bullish but also cautious. I don’t recommend that anyone should mortgage their home to invest in Joby Aviation. This is an emerging industry, and there are risks involved.
That said, I like the idea of buying a small amount of Joby Aviation stock and just holding it for years. Joby Aviation has the potential to gain a firm eVTOL-market foothold in the U.S. and internationally.
The best strategy is to think long-term and keep your position size tiny. With that in mind, get your passport ready and feel free to take a share position in Joby Aviation.
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.
