Joby Aviation (NYSE:JOBY) stock might seem totally speculative, but there are sensible reasons to invest in Joby Aviation in 2024. Indeed, if you don’t get on board now, you might miss a high flyer in the coming quarters.
Joby Aviation specializes in electric vertical takeoff and landing (eVTOL) vehicles, which are informally known as flying cars or flying taxis. I don’t recommend overloading your portfolio with Joby Aviation stock. However, after conducting your due diligence, you’ll surely be convinced to give it a try with a small share position.
Is JOBY Stock Just for Gamblers?
I won’t pretend that Joby Aviation is a consistently profitable company because that’s just not true. However, Joby certainly isn’t bankrupt, and the company had $1.1 billion worth of cash and short-term investments at the end of 2023’s third quarter.
Besides, Joby Aviation stock can’t be just for gamblers if the company has government support. First of all, Joby has a contract with the Department of Defense that’s valued at $131 million. The company proudly boasted that an aircraft from Joby Aviation “became the first electric air taxi delivered to the U.S. Air Force.”
Furthermore, Joby Aviation “completed a series of air traffic simulations” with the National Aeronautics and Space Administration (NASA). Together, Joby and NASA evaluated the potential of eVTOL aircraft for various use cases, “including at busy airports.”
Also, Joby Aviation disclosed a $9.8 million California Competes grant to support the company’s expansion in California. The funding is also intended to support Joby’s “ongoing type certification program with the Federal Aviation Administration as well as for initial commercial operations, expected to begin in 2025.”
Joby Aviation Is an International eVTOL Business
Clearly, Joby Aviation stock isn’t just for gamblers. The company has operations in California as well as in New York, plus support from the federal government.
Yet, that’s not the full story as Joby Aviation’s operations aren’t limited to the U.S. Not long ago, Joby revealed a strategic partnership with ANA Holdings and a Japanese real estate developer called Nomura Real Estate Development Co. Ltd.
Together, these companies will develop air taxi infrastructure — or “vertiports” — in Japan. Focusing on “metropolitan areas such as Tokyo,” Joby Aviation and its strategic partners plan to help build out the necessary landing infrastructure to advance Japan’s eVTOL industry.
Thus, air taxis could soon become commonplace in Japan’s big cities. If Joby Aviation can be an early mover in this region of the world, the company may have access to vast, untapped revenue sources.
Joby Aviation Stock: Your Passport to the Worldwide eVTOL Industry
Joby Aviation works with the Defense Department and NASA, and the company has financial backing from California’s government. So, don’t assume that Joby Aviation stock is just a speculative asset for reckless traders.
Besides, Joby Aviation has a fairly solid capital position and is developing a presence in Japan. Hence, if you’re on board with the fast-evolving worldwide eVTOL industry, consider holding a few shares of JOBY stock for 2024.
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.
