JOBY Aviation (NYSE:JOBY) is a key player in the emerging air mobility sector, showing promise despite recent gains. Its expertise in electric vertical takeoff and landing aircraft space makes JOBY as a leader in innovative urban transportation solutions.
This flying car stock offers potential for cautious long-term growth investors looking to tap into the air taxi market.
Indeed, soaring from around $3.40 per share to start the year to nearly $12 per share (around $7.35 per share at the time of writing), it’s clear that JOBY stock has taken investors on a wild ride.
Let’s dive into a few things investors should watch for this stock in the coming weeks that could potentially propel this stock to go on another impressive rally.
Recent News and Updates on JOBY
Joby Aviation is finalizing the site for its electric aircraft factory, with Ohio and North Carolina as potential options. The California startup creates eVTOL aircraft for commercial use and the Department of Defense.
In partnership with Delta Air Lines (NYSE:DAL), the company plans to offer air travel services in New York and Los Angeles.
Last month, regulators granted a key certificate for flight testing Joby’s first production prototype aircraft. The FAA’s Special Airworthiness Certificate is essential for full certification and 2025 commercial operations. This new manufacturing facility is pivotal for hitting these milestones, scaling production from a few to hundreds yearly.
Backed by a significant Toyota (NYSE:TM) partnership, Joby benefits from a substantial $400 million investment and a component supply agreement.
Joby’s Financials
With substantial funding and partnerships exceeding $700 million, JOBY Aviation is well-positioned for success. Despite a Q2 loss of $286 million, primarily because of aircraft development costs, the company remains financially strong, with nearly $1.2 billion in cash and investments, supported by recent institutional investments.
Like many growth stocks, Joby’s cash consumption is common as it expands market presence, yet it remains manageable without immediate liquidity concerns.
This makes JOBY stock a potential choice among flying car stocks to consider, for those with the stomach for volatility.
Bet Big on JOBY Today
Notable institutional investments in Joby Aviation reflect positive sentiment, with increased holdings and new positions showing optimism.
Prominent figures like Paul Cahill Sciarra, JoeBen Bevirt, Toyota, and others hold notable Joby positions. Joby’s solid cash and financial outlook draw investor interest.
Considering a cautious speculative investment in Joby Aviation could be prudent because of government support and commercial progress, despite associated risks.
Pending a successful plan, Joby Aviation aims to start commercial service by 2025, requiring patience with its profit timeline and stock surge. Although there are risks, those seeking long-term growth might find investing in JOBY stock promising.
It’s on my watch list now as a speculative buy, and while I think new highs could be in the company’s future, I’m going to continue to monitor the stock for ongoing updates before jumping in with two feet.
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.