Traffic -- ugh. It doesn't matter where it is -- New York, Atlanta, or the Costco (COST +0.64%) parking lot -- it puts a damper on your day.
Investors who understand the pain of traffic will probably appreciate the potential game-changing proposition of Joby Aviation (JOBY +0.31%). Its electrical vertical take-off and landing (eVTOL) aircraft, or "flying taxis," could offer a skyward path above traffic, with a matching growth trajectory.
This is a pre-revenue company, which has neither regulatory approval to operate commercial flights, nor a fleet of eVTOLs to whip up revenue. It's been a leader in the nascent eVTOL market, but since that market is just an idea, it's little more than a leader in a pack of dreams.
That's been the case so far, but 2026 could be momentous due to the possibility of Federal Aviation Administration (FAA)-type certification.
Meaningful steps, but certification remains a challenge
Every couple of months, Joby Aviation seems to make another leap toward commercialization. In August, it completed its first flight between two airports, which involved maneuvering around other aircraft. In October, it demonstrated three flights for a California airshow. Last week, it became the first eVTOL company to complete a flight test in Dubai.
NYSE: JOBY
Key Data Points
These demonstrations bolster the case that Joby's aircraft isn't just operable, but also safe for passengers, an important point to prove for the FAA. Joby needs its regulatory blessing to turn on the revenue spigot.
Two Joby eVTOL air taxis on a runway. Photo Source: Joby Aviation.
They also prepare Joby for the final stage of certification, which it's finally in. Per its third-quarter shareholder letter, it expects flight testing by Joby pilots to start later this year, with "for credit" testing to begin in 2026.
That doesn't mean Joby will get FAA certification in 2026, but the runway to commercial lift-off is coming into view. For investors who believe certification is nearly in Joby's grip, these last months of 2025 might be a good time to buy.
