Joby Aviation (NYSE:JOBY) stock lifted off on Friday, gaining about 2.5% on promising news out of the Federal Aviation Administration ( ). Indeed, the regulatory body approved Joby’s certification plan for its propulsion system, a crucial benchmark for its high-flying air taxi aspirations.
So, what do you need to know about Joby’s latest development?
Well, the electric propulsion system — which includes the propeller system, variable pitch actuation, coolant pump, nacelles and relevant electrical wiring — was approved as part of the certification plan. This leaves Joby just one certification plan to be accepted, with the final document currently under review by the FAA, per Seeking Alpha. According to Joby, this would mark the completion of three out of five phases of its certification procedure.
“We now have an approved path across our certification program for all of the structural, mechanical, and electrical systems of our aircraft. This sets the stage for our team to execute against that path with a well-defined approach to for-credit testing and analysis as we continue to lead the industry towards certifying an electric air taxi with the FAA,” said Didier Papadopoulos, President of Aircraft at Joby.
JOBY Stock Soars As ‘Lift Off’ Approaches in 2024
With today’s gains, JOBY stock is up more than 40% for the past 12 months, although the stock is still in the red since the start of 2024. JOBY is down 4% year-to-date ().
Since going public via a special purpose acquisition company (SPAC) back in 2021, Joby has been a stock with potential in the clouds. The air taxi company is developing an electric vertical take-off and landing (eVTOL) aircraft, with some analysts holding out hope that the company turns into a revenue-producing cash cow.
2024 may well be the year the company finally takes launch — or at least accomplishes most major steps in pursuit of the goal.
Joby forecasts its business will slowly ramp up its revenue as it begins selling aircrafts priced at up to $5 million per vehicle. A deal with Atlantic Aviation will set the stage for a formal air taxi service, estimating 2024 revenue of $25 million.
While things may still be up in the air for Joby, right now, the future looks bright.
On the date of publication, Shrey Dua did not hold (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.