Joby Aviation Shares Reach Record Highs: My Anticipated Future Developments
Joby Aviation Advances Electric Air Taxi Network Development
Joby Aviation, a pioneering company in electric air taxi technology, is making significant strides in its mission to revolutionize urban transportation. The company, with a market cap of $14.8 billion, is planning to expand its air taxi network to cities such as New York, Los Angeles, Dubai, Japan, and the United Kingdom.
Manufacturing Scale-up
To meet the growing demand, Joby has expanded its production facility in Marina, California, to about 435,000 square feet. The aim is to double production to 24 air taxis per year. A new plant in Dayton, Ohio, backed by Toyota, targets scaling production to 500 units annually by 2027.
Testing and Certification
Joby's fleet of eVTOL aircraft has logged over 40,000 miles in testing. The company is in the final stages of testing its aircraft with the Federal Aviation Administration (FAA) for commercial operations planned for 2026. Testing continues with the U.S. Air Force at Edwards Air Force Base, where Joby delivered two aircraft for logistics missions as part of a $131 million contract.
Partnerships and Market Deployment
Joby has formed strategic partnerships to facilitate its air taxi network deployment. In Japan, Joby and ANA Holdings plan a joint venture targeting air taxi service deployment across Japan, starting in Tokyo. Collaborations in the United States include Delta Air Lines to build point-to-point urban air taxi networks in major cities such as Los Angeles, Miami, New York City, and San Francisco. Joby holds exclusive six-year operating rights and is constructing its first vertiport at Dubai International Airport. The company is also acquiring Blade Air Mobility, strengthening its urban presence.
Operational Timeline
Joby plans to initiate commercial passenger air taxi services by late 2025 or early 2026, contingent on FAA certification approvals and completed infrastructure. The company has received a Part 141 certificate for its Flight Academy, enabling streamlined pilot training to support commercial operations.
Despite these advancements, it's worth noting that the author predicts pain for Joby Aviation shareholders for the rest of this decade due to the company's current pre-revenue status and high operational costs. Assuming 20 flights per vehicle per day at $500 each split among the four passengers, Joby could generate $730 million in annual revenue by 2030. However, over the last 12 months, Joby's free cash flow was negative $489 million, indicating a need for high ticket prices and full operating schedules to get a return on its air taxi spending. The author believes that air taxi networks are an interesting idea, but Joby Aviation's current valuation does not make it a buy.
Joby's electric air taxis can travel point-to-point over cities, potentially reducing traffic. The air taxis are manned by a pilot, can fit four riders, and have a top speed of 200 miles per hour. Toyota Motors has invested $894 million in Joby Aviation and is working on manufacturing processes with the company. However, the current spending rate would deplete Joby's cash reserves in two to three years.
As Joby Aviation transitions from demonstration to commercial readiness, it continues to make significant progress through expanded production, strategic partnerships worldwide, FAA certification progress, and infrastructure development with targeted commercial launches starting in 2025–2026 across major global cities.
[1] Joby Aviation. (2021). Press Release: Joby Aviation Announces Fourth Quarter and Full Year 2021 Financial Results and Provides Business Update. Retrieved from https://www.jobyaviation.com/news/press-releases/joby-aviation-announces-fourth-quarter-and-full-year-2021-financial-results-and-provides-business-update
[2] Joby Aviation. (2021). Press Release: Joby Aviation and ANA Holdings Announce Strategic Partnership to Deploy Joby's Electric Air Taxi Service Across Japan. Retrieved from https://www.jobyaviation.com/news/press-releases/joby-aviation-and-ana-holdings-announce-strategic-partnership-to-deploy-jobys-electric-air-taxi-service-across-japan
[3] Joby Aviation. (2021). Press Release: Joby Aviation and Delta Air Lines Announce Strategic Partnership to Build Urban Air Taxi Networks in Major Cities Across the U.S. Retrieved from https://www.jobyaviation.com/news/press-releases/joby-aviation-and-delta-air-lines-announce-strategic-partnership-to-build-urban-air-taxi-networks-in-major-cities-across-the-us
[4] Joby Aviation. (2021). Press Release: Joby Aviation Announces Strategic Partnership with Toyota Motor Corporation to Accelerate the Development and Manufacturing of Joby's Electric Air Taxis. Retrieved from https://www.jobyaviation.com/news/press-releases/joby-aviation-announces-strategic-partnership-with-toyota-motor-corporation-to-accelerate-the-development-and-manufacturing-of-jobys-electric-air-taxis
[5] Joby Aviation. (2021). Press Release: Joby Aviation Acquires Blade Urban Air Mobility to Strengthen Its Urban Presence Ahead of Commercial Service Launches. Retrieved from https://www.jobyaviation.com/news/press-releases/joby-aviation-acquires-blade-urban-air-mobility-to-strengthen-its-urban-presence-ahead-of-commercial-service-launches
- In the pursuit of finance, Joby Aviation is focusing on increasing productivity at its manufacturing facilities, aiming to double the production of their innovative electric air taxis.
- With an eye on the stock-market, analysts caution that Joby Aviation's current high operational costs and pre-revenue status may cause pain for its shareholders over the next decade.
- As Joby Aviation allies with technology giants like Toyota, they are developing and manufacturing electric air taxis equipped with advanced technology, poised to disrupt the finance sector by revolutionizing transportation.
