At one time, the idea of providing passengers an air taxi service via electric-powered aircraft that take off and land vertically may have seemed the stuff of science fiction. But not today.
Joby Aviation (JOBY -3.57%) has made tremendous strides toward making this vision a reality, and it's on the cusp of starting commercial operations. For several reasons, it's likely that investors who pilot Joby stock into their portfolios are positioning themselves to profit from the burgeoning of a new market.
Image source: Getty Images.
This is going to be big
These days when aircraft are above us, we certainly don't expect to see electric vertical takeoff and landing (eVTOL) aircraft such as the type that Joby is developing. This seems likely to change for residents of certain metropolitan areas in the near future. The company recently announced a partnership with Virgin Atlantic with respect to the launch of air taxi service in the United Kingdom. This complements Joby's agreement with Delta Air Lines to provide air taxi service in New York and Los Angeles.
Joby's plans to operate in the U.K., New York, and Los Angeles are the tip of the iceberg as the company will certainly work to expand operations in a variety of other markets both in the United States and abroad in the coming years.
Just how big is the market opportunity that lies before Joby? According to Grand View Research, the global eVTOL market was valued at $1.4 billion in 2023, and it's expected to rise at a 55% compound annual growth rate to $28.6 billion in 2030.
Strong financials should help the company soar
It's not unusual to see a company in the pre-revenue phase of its development issuing debt to raise capital in order to keep the lights on. Joby, however, doesn't find itself in this situation. Illustrating an extremely advantageous financial position, Joby reported a net cash position of $781 million at the end of the first quarter 2025.
The company's finances improved even more after the first quarter of 2025. In late May, the company announced that it had received the first $250 million investment -- of a total potential investment of $500 million -- from Toyota Motor. Joby plans on using the funds to support both its efforts to achieve the necessary Federal Aviation Administration (FAA) certification as well as its manufacturing of its eVTOL aircraft.
Addressing the importance of the investment from Toyota, JoeBen Bevirt, Joby's CEO, stated, "With this capital and Toyota's legendary production expertise, we're enhancing our ability to scale cutting-edge design and manufacturing to meet the demands of our partners and customers."
Joby recently doubled its manufacturing facility in California, where it will now have an expanded pilot training and flight simulation center in addition to aircraft maintenance facilities that will support its commercial operations.
Flying closer to FAA certification
For the second consecutive quarter, Joby reported record progress in its effort to achieve FAA certifications, highlighted by the fact that it has completed piloted flights with full transitions from vertical to cruise flight, and back again. In fact, the company proclaimed in its Q1 2025 shareholder letter that it "became the first company to routinely perform inhabited testing of an electric air taxi from hover to wingborne flight."
In December 2024, Joby reported that it had begun the final phase of certification for its aircraft after conducting its first FAA testing under Type Inspection Authorization (TIA), and it expects to commence TIA flight testing in 2025 with its first FAA-conforming aircraft.
Logging further successes in the second quarter of 2025, Joby announced a new testing milestone in that it achieved simultaneous flight of two aircraft. Lauding the achievement, Bevirt said, "With six aircraft in our test fleet, flying multiple aircraft at a time will play an important role in accelerating our certification testing and supporting our plans to carry our first passengers next year."
Joby Aviation isn't a mere flight of fancy
Steadily advancing toward the launching of commercial operations, Joby is positioning itself to innovate in the air travel industry. It bears acknowledging that the company's flight forward is bound to experience some turbulence as it works out its growing pains, so investors who are uncomfortable with exposing themselves to a higher-risk investment may want to look elsewhere for the time being.
Those willing to endure the occasionally bumpy flight, however, would be wise to consider riding with Joby as it soars into the wild blue yonder.
