Are you surprised that Joby Aviation (NYSE:JOBY) stock still trades far below $10? Don’t be, as the electric vertical takeoff and landing vehicle market is still in its infancy. New technologies take a while to develop and gain widespread adoption, so just relax and hold on to your Joby Aviation shares.
Granted, Joby Aviation’s air taxis aren’t fully approved for commercialization yet, and the company’s financials aren’t perfect. That’s why Joby Aviation stock will undoubtedly be volatile for a while. Just buckle up and prepare for a long flight that will richly reward the shareholders, eventually.
JOBY Stock Isn’t for the Faint of Heart
In less than a year, JOBY stock got cut in half, falling from $10 to $5. Clearly, this stock isn’t meant for investors who can’t tolerate volatility.
It’s also not for anyone’s who’s a stickler for profitability. Joby Aviation incurred another net earnings loss in 2023’s fourth quarter. On the other hand, the company did record $1.032 million in flight-services revenue, versus no revenue in the year-earlier quarter.
Joby Aviation’s position of cash and cash equivalents grew from $146.101 million at the end of 2022 to $204.017 million at the end of last year.
If we can veer away from the company’s financials for a moment, Joby Aviation completed the third of five certification stages for the Federal Aviation Administration.
Joby Aviation: Progress, Not Perfection
Joby Aviation is making progress in critical areas. If you’re expecting perfection, you won’t find it here. But then, if Joby Aviation were already a darling of the market, the share price wouldn’t be so cheap.
Moreover, here’s another sign that Joby Aviation is making headway. The company acquired a manufacturing facility in Ohio and has already started the hiring process for that location.
Joby Aviation expects to produce up to 500 eVTOL aircraft per year at the Ohio facility. Think about it: if Joby Aviation were really in serious trouble, the company wouldn’t be expanding like this.
Joby Aviation has a $131 million contract with the U.S. Department of Defense. Joby Aviation plans to deliver four eVTOL aircraft to U.S. Air Force bases as part of this contract. It delivered its first one in September 2023.
This is exciting news for Joby Aviation and its stakeholders, as the government is certainly a great client for the company to have.
JOBY Stock: Set Your Sights on $10
Joby Aviation shares haven’t taken flight in 2024 so far, but that flight is just delayed for a little while. The takeoff moment will happen, though it’s difficult to predict the exact time.
Just understand that there will be turbulence (i.e., volatility) along the way, and it could take a while to reach your destination. Still, JOBY stock has reached $10 before and it should be able to revisit that price level.
In the end, patience and moderate position sizing will be the keys to the amazing wealth-building possibilities for Joby Aviation’s long-term investors.
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.
