Joby Aviation (JOBY +2.19%) is an aircraft start-up that could alleviate a problem most city drivers slog through every day: traffic.
Its big idea is to fly passengers in electrical vertical takeoff and landing (eVTOL) aircraft, which can buzz over congested city roads and highways, especially to and from airports.
If that description made you think, "wait -- isn't that just a helicopter?" then let me elaborate. These craft are electric, relatively quiet, and use a combination of fixed wings and propellers to tilt forward in flight like an airplane.
Image source: Joby Aviation.
Those features together is what makes Joby's aircraft so exciting in the space of urban air travel. And getting paying passengers into those aircraft first is why I think this growth stock could soar over the next decade.
First-mover advantage could give Joby a deep competitive moat
Joby Aviation is getting close to being the first eVTOL company with a license to fly everyday passengers over city traffic.
The company is now in the final stages of FAA-type certification process, which it needs to operate commercially. On that front, it appears to be closer than rival Archer Aviation (ACHR +4.00%), which is working through the same regulatory steps.
NYSE: JOBY
Key Data Points
In addition to making regulatory progress, Joby also has a powerful tech ally in Nvidia (NVDA 1.83%). In late October, Nvidia selected Joby as a launch partner for its new IGX Thor computer platform, which will sit inside aircraft and process data from onboard sensors in real time. If it works as planned, it could make Joby's aircraft safer and more reliable.
Until Joby has regulatory approval, however, its revenue will be essentially zilch, and it will survive on its cash. On that note, it ended the third quarter with about $978 million in cash and equivalents. That should give it a couple of years to continue funding its R&D at its current burn rate.
JOBY Cash and Short Term Investments (Quarterly) data by YCharts
I wouldn't overlook the risks, and gaining regulatory approval is still one. But within the next decade, I see Joby getting that approval first -- and soaring as the default urban air taxi.
