Joby Aviation's (JOBY +2.84%) stock declined by 17.9% in March, according to data from S&P Global Market Intelligence. It came as part of a broad-based sell-off in risk assets (for reference, its peer, Archer Aviation, declined 27.4% over the same period), in line with the S&P 500's overall decline. Higher-risk assets are often sold off inordinately in such times, as there's a flight to safety. That said, it was a mixed month operationally for the company.
The bad news first
Starting with the negative news, Joby and Archer, for that matter, are being impacted by the conflict in the Persian Gulf. In late February, just days before the U.S. and Israel attacked Iran, Joby and Uber announced Uber Air, which will allow customers to book Joby air taxis via the Uber app. Given that the first customers for the service were expected to be in Dubai, the announcement coudn't have come at a worse time.
NYSE: JOBY
Key Data Points
Archer was also targeting the United Arab Emirates (UAE) for its piloted flights, and has deals in place to test and ultimately fly electric vertical take-off and landing (eVTOL) air taxis in Saudi Arabia as well. Unfortunately, until the conflict in the region is decisively resolved, Joby and Archer's plans are likely to be on hold.
More good news than bad in March
On a more positive front, in early March, Joby announced it had "been selected as a partner in multiple winning applications under the White House-backed Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program (eIPP)." As such, it could potentially begin operations in 10 States in 2026, including Florida, New York, and Texas.
More good news followed in mid-March with the announcement that Joby had begun flight testing Federal Aviation Administration (FAA) conforming aircraft for Type Inspection Authorization (TIA). This prepares the ground for FAA pilots to flight test the aircraft later. Joby also completed some high-profile demonstration flights across the San Francisco Bay.
Image source: Joby Aviation.
Where next for Joby Aviation
The positive developments in March help derisk the stock, but the turmoil in the Persian Gulf is a setback to eVTOL development – the UAE, in particular, provides a pathway to commercial eVTOL deployment ahead of FAA certification.
Still, if you liked the stock and it's somewhat derisked through March, and you believe the conflict will be relatively short-lived, then this is a good buying opportunity.
