Joby Aviation (JOBY 2.27%) wants to redefine urban transportation as we know it. With its electric vertical take-off and landing (eVTOL) aircraft, Joby's aircraft could be ideal for bypassing congested urban transportation. The company recently made headlines with its flights in New York City and San Francisco, and it is getting closer to launching in the United States as soon as this year.
With the upstart company closing in on commercial operations, does Joby Aviation stock have the potential to be a millionaire maker? Let's dive into its opportunity to find out.
NYSE: JOBY
Key Data Points
Joby recently piloted the first eVTOL flight over Manhattan
Joby's eVTOL aircraft takes off like a helicopter, flies like an airplane, and uses electric batteries to enable quiet, urban transportation. These aircraft allow customers to avoid the gridlock on the ground below and get to where they need to go in a fraction of the time.
As part of its efforts to fast-track flying taxis, the U.S. government launched the eVTOL Integration Pilot Program (eIPP). This program aims to bypass traditional approval processes that can take years to complete. It enables companies to work with state and local governments to test real-world operations and help jump-start this new form of transportation.
Joby was one of the companies selected for this program, allowing it to operate in up to 11 states, including key markets such as New York, Texas, and Florida.
Image source: Joby Aviation.
As part of this program, Joby recently completed point-to-point demonstration flights in the San Francisco Bay Area and New York City. In New York, Joby completed the city's first-ever eVTOL flights connecting JFK International Airport to three different Manhattan heliports. The flights demonstrated Joby's aircraft's operational readiness and showed that it could save commuters significant time, cutting a 60-minute trip down to just seven minutes.
Later this year, FAA test pilots will conduct "for-credit" flight testing in Joby's aircraft, and once they sign off, Joby will officially get its Type Certification, paving the way for commercial operations. To jump-start its commercial business, Joby acquired Blade Air Mobility's passenger business last year. Blade uses traditional helicopters, but these will eventually be replaced with Joby's eVTOL aircraft as it passes through FAA certification and more vehicles are manufactured.
Could buying Joby make you a millionaire?
If you were to invest $20,000 in Joby today, you would need to see your investment 50X from here, and Joby would need to go from a market capitalization of around $10 billion today to $500 billion. Morgan Stanley projects the Urban Air Mobility market could reach $9 trillion globally by 2050, and if Joby Aviation manages to capture a large share of this, it could have long-term wealth-creating potential.
However, the company is still very early to market, and success hinges on its ability to scale up both manufacturing and customers adopting this new form of transportation. So while it has long-term growth potential, the risks are quite high. If you do buy, don't invest more than you're comfortable with, and be willing to hold the stock for decades as the industry grows.
