Joby Aviation (JOBY 2.38%) stock surged early in Friday's trading, but it wound up giving up most of its gains. Shares of the maker of electric vertical takeoff and landing (eVTOL) vehicles rose 2.3% today, but they had been up as much as 11.2% earlier in the session. Meanwhile, the S&P 500 fell 0.1%, and the Nasdaq Composite climbed 0.4%.
Joby stock posted gains today following a press release from the company announcing that it will be participating in the White House's eVTOL Integration Pilot Program. Following an executive order from President Donald Trump, it seems mature eVTOL aircraft will be able to operate in select markets without receiving full certification from the Federal Aviation Administration.
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Is Joby stock a buy right now?
The recent executive order on eVTOL aircraft and the White House eVTOL Integration Pilot Program look to be significant wins for Joby Aviation. The ability to conveniently train pilots in the U.S. could make the launch and scaling up of the company's commercial flight business in the territory significantly easier. It could also be a big boon when it comes to the development, testing, and adoption of eVTOL craft for defense applications.
Sporting a market capitalization of roughly $12 billion and still without revenue, Joby is undeniably a high-risk investment. For those unwilling to embrace the potential for huge downside volatility, the stock should be a no-go -- but it could make sense as a buy for investors seeking exposure to the eVTOL market.
