Joby Aviation: Buy, Sell, or Hold?

Core Insights - The article discusses the potential of eVTOL (electric vertical take-off and landing) technology to transform urban mobility, with Joby Aviation as a leading player in this sector [1][2][3] Company Overview - Joby Aviation's S4 aircraft is designed to carry four passengers over a range of 150 miles per charge, attracting significant investments from major companies like Toyota, Delta Air Lines, and Uber Technologies [4] - Toyota has invested a total of $894 million in Joby, including a recent$500 million investment to support certification and commercial production [5] Competitive Landscape - Joby Aviation's main competitor is Archer Aviation, with Joby adopting a vertically integrated model for developing its components, while Archer relies on legacy aerospace suppliers [6][7] Regulatory Environment - The FAA has introduced regulations to support advanced air mobility, including a new Special Federal Aviation Regulation (SFAR) that facilitates the use of air taxis [8] Commercial Operations Timeline - Joby plans to launch commercial operations in Dubai by late 2025 and aims to start services in the U.S. by 2026, focusing on high-density markets like Los Angeles and New York City [9][10] - Joby is currently in the process of obtaining FAA Type Certification, having completed three of the five required stages [11][12] Financial Position - Following Toyota's investment, Joby has $1.4 billion in cash and investments, but the company is expected to continue burning cash as it works towards certifications and scaling production [14] Market Challenges - Despite the excitement surrounding eVTOL technology, there are hurdles to overcome before it can achieve commercial success, including public acceptance and the development of a large-scale market [15]