Joby Aviation (NYSE:JOBY) remains a top pick in the electric vertical takeoff and landing sector. Thus far this year, JOBY stock has had a volatile ride. However, some speculative capital appears to be coming back into the market, boosting this stock in recent trading days.
Joby has been pretty busy in 2022 and 2023, as FAA certifications for its units have been progressing fast. This places its commercial eVTOL deployments closer to flying.
Joby is actively preparing the ground in target markets to streamline commercialization. Teaming up with Atlantic, they’re electrifying existing California and New York aviation infrastructure.
The company has also secured approval to launch air taxi services in the United Arab Emirates next year, with an exclusive six-year contract in Dubai.
Joby gained military airworthiness approval for its eVTOLs in 2020 and delivered two aircraft to MacDill Air Force Base in 2025 under the Agility Prime contract.
Analysts at Tipranks predict a 44% upside in JOBY stock, given these developments.
Let’s dive more into why Joby is a company worth keeping on the watch list right now.
Second Prototype and JOBY Stock
Joby Aviation completed its second prototype aircraft and expanded its production line in Marina, California, doubling its manufacturing capacity. The new facility, set to open next year, will support pilot training, flight simulation, and maintenance, partly funded by a $9.8 million grant.
After final testing later last year, the second prototype joined the first and was delivered to the US Air Force in September.
Joby is assembling additional aircraft, with parts for multiple others in production. The company plans to deliver two aircraft to MacDill AFB in Florida next year as part of its extended partnership with the USAF.
Joby’s aircraft has garnered interest from the US Marine Corps and US Army, and the FAA issued airworthiness criteria for it, a first for the eVTOL segment.
Joby completed the third stage of the FAA’s type certification process and began a certification flight-testing program.
Marina Facility’s Crucial Role in Joby’s Future
According to an article in Monterey County Now by Erik Chalhoub, he states that Joby’s future is bright, but the Marina plays a crucial role on its future.
Chalhoub has just started his first day at Joby’s Marina facility, where the company broke ground on an expansion project.
Based in Santa Cruz, Joby focuses on developing electric vertical take-off and landing aircraft for commercial passenger service.
In 2019, it established a 120,000-square-foot research and development facility at Marina Municipal Airport, unveiling its first production prototype aircraft in June 2023.
Joby chose to expand its Marina facility despite previously selecting Dayton, Ohio, for a large factory.
Didier Papadopoulos, Joby’s president of Aircraft OEM, announced the expansion on April 29. The move will double the Marina facility’s size, enabling Joby to produce 25 aircraft annually.
Additionally, Joby inked a deal last week with three UAE government departments for future air taxi services in the country.
JOBY is a Strong Buy
Joby’s partnership with the Department of Defense allowed them to assess aircraft capabilities before a commercial launch.
Financially stable with $1 billion in cash, Joby faced a $115 million burn rate. Despite a 98% increase in 2023, shares fell 25.5% in 2024.
Financial figures are crucial in stock analysis, especially for startups like JOBY. Despite being pre-revenue, partnerships hint at its potential.
Joby’s progress in certification and $1 billion cash balance offer stability. Despite $513 million losses in 2023, the company has a growth runway which could last years.
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.
