How to Invest in Joby Aviation

Founded in 2009 by entrepreneur JoeBen Bevirt, Joby Aviation (JOBY -4.23%) develops electric vertical takeoff and landing (eVTOL) aircraft. Also known as flying taxis, its eVTOL aircraft are designed to travel more than 100 miles with a single charge and be quiet enough to land in a neighborhood. The Joby eVTOL is intended to take a pilot and four passengers at speeds of up to 200 miles per hour.

The goal is to enable journeys that are as much as five times faster than driving while also utilizing the thousands of airport and heliport facilities already in existence across the country. In developing electric air taxis for commercial service, Joby Aviation is in the process of certifying its aircraft with the U.S. Federal Aviation Administration (FAA). Joby is the first eVTOL manufacturer to complete four of five stages of the FAA-type certification program.

The company received the FAA Part 141 certificate in 2024 for its Joby Aviation Academy, allowing it to build out a cohort of qualified pilots before commercial operations officially commence. Joby Aviation is also working with regulators around the globe, including in the United Kingdom, United Arab Emirates, Japan, and South Korea, as it seeks to commercialize its air taxi operations internationally.

Joby Aviation already has notable partnerships in place with commercial as well as government entities for its air taxi services, including Delta Air Lines (DAL -4.29%), Toyota Motor Corporation (TM +0.96%), Uber Technologies (UBER -1.03%), the U.S. Department of Defense, and the aviation subsidiary of Saudi Aramco. Joby Aviation began initial service operations with the U.S. Department of Defense in September 2023 and is hoping to launch commercial passenger operations in 2026.

Joby Aviation went public in August 2021 after completing a reverse merger with a special purpose acquisition company (SPAC). While it's been a turbulent ride for investors since that initial public offering (IPO), you might be wondering how to invest in Joby Aviation stock, whether the company generates revenue or profits, and more.

1. Open your brokerage account: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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The bottom line on Joby Aviation

While it started limited operations for the U.S. Department of Defense in late 2023, Joby Aviation is not yet transporting commercial passengers and is working to achieve full FAA certification for its aerial taxis. The company is reporting hardly any revenue and is hemorrhaging losses, although both of these realities are to be expected for a company at this stage of its growth story.

With those risks being considered, Joby Aviation could disrupt the emerging aerial taxi industry. Its partnerships with some of the biggest names in the commercial transportation world and its collaborations with governments around the world could enable it to fulfill its goals of becoming a global powerhouse in the aerial taxi space.

Joby's stock could see significant gains if it can secure authorization from the FAA and other regulatory agencies, achieve successful commercial deployment, and generate revenue from its planned vertically integrated business model. This is a highly speculative play, but long-term investors with a sizable buy-and-hold horizon and some extra cash to spare for a well-diversified portfolio might want to take a second look.