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Toyota Fuels Joby's eVTOL Dreams With Additional $500M Investment
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Japan’s auto giant Toyota (TM - Free Report) is investing another $500 million in California-based electric vertical takeoff and landing (eVTOL) company Joby Aviation (JOBY - Free Report) . This capital injection is aimed at accelerating Joby’s certification process and commercial production, signaling Toyota’s belief in the future of urban air mobility.
The $500 million commitment will be delivered in two tranches, with the first installment expected by the end of this year and the second by 2025. It will bring Toyota’s total investment in Joby to $894 million, further cementing their partnership. Following the announcement, shares of Joby surged 27%, indicating investor confidence in the air-taxi startup’s future prospects.
Toyota’s investment in Joby is part of a broader strategy to diversify its portfolio across various transportation technologies. This Zacks Rank #3 (Hold) automaker is betting on multiple fronts, including electric vehicles (EVs), hydrogen-powered cars and next-generation internal combustion engines. By investing in air taxis through Joby, Toyota is positioning itself at the cutting edge of transportation innovation. TM’s expertise in mass production and supply chain management will likely be invaluable as Joby scales its operations and moves toward commercial viability.
Joby’s Journey: Driving the eVTOL Revolution
Joby is a leading player in the eVTOL space, a nascent industry poised to revolutionize transportation by offering small electric aircraft capable of vertical takeoffs and landings. While the technology promises to reshape how people move, it’s still in its early stages, and obtaining regulatory approval remains a significant hurdle.
Fortunately for Joby, the company has made notable progress. It became the first eVTOL manufacturer to have its certification plans accepted by the U.S. Federal Aviation Administration (FAA), marking a crucial step toward full-scale production. The company’s pilot production line in Marina, CA, is already operational, with ambitions to ramp up production to one vehicle per month by the year-end. Joby is also planning to launch its first commercial service in Dubai by 2025.
Despite these advances, the road to success for Joby and the eVTOL industry is fraught with challenges. Developing the necessary infrastructure, overcoming regulatory roadblocks and gaining public acceptance are all critical hurdles. Moreover, the cost-intensive nature of eVTOL development has forced many companies in the sector to seek additional capital and delay their certification milestones. However, with over $2 billion raised before Toyota’s recent investment, Joby is one of the better-capitalized players, offering a cushion against some of these challenges.
Joby’s Promise and Risks: Should You Invest in the Stock?
Joby’s vertically integrated business model, which includes both manufacturing and service operations, presents significant opportunities for long-term value creation. In terms of market capitalization, Joby is currently valued at nearly three times that of its closest competitor, Archer Aviation (ACHR - Free Report) , highlighting its leadership in the eVTOL space.
For growth-oriented investors with a high tolerance for risk, Joby Aviation represents a compelling opportunity to invest in the future of urban air mobility. The company’s financial strength, combined with Toyota’s backing, positions it well to lead the eVTOL revolution.
However, with commercial production not expected until 2025, Joby’s path to profitability remains distant, and the company is likely to face turbulence as it navigates regulatory approvals, infrastructure development and consumer adoption.
Joby currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2024 loss per share has widened by a penny in the past 30 days to 69 cents, indicating a 12.6% improvement year over year. The company surpassed estimates in three out of the trailing four quarters while matching the same once, with the average earnings surprise being 9.1%.
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Toyota Fuels Joby's eVTOL Dreams With Additional $500M Investment
Japan’s auto giant Toyota (TM - Free Report) is investing another $500 million in California-based electric vertical takeoff and landing (eVTOL) company Joby Aviation (JOBY - Free Report) . This capital injection is aimed at accelerating Joby’s certification process and commercial production, signaling Toyota’s belief in the future of urban air mobility.
The $500 million commitment will be delivered in two tranches, with the first installment expected by the end of this year and the second by 2025. It will bring Toyota’s total investment in Joby to $894 million, further cementing their partnership. Following the announcement, shares of Joby surged 27%, indicating investor confidence in the air-taxi startup’s future prospects.
Toyota’s investment in Joby is part of a broader strategy to diversify its portfolio across various transportation technologies. This Zacks Rank #3 (Hold) automaker is betting on multiple fronts, including electric vehicles (EVs), hydrogen-powered cars and next-generation internal combustion engines. By investing in air taxis through Joby, Toyota is positioning itself at the cutting edge of transportation innovation. TM’s expertise in mass production and supply chain management will likely be invaluable as Joby scales its operations and moves toward commercial viability.
Joby’s Journey: Driving the eVTOL Revolution
Joby is a leading player in the eVTOL space, a nascent industry poised to revolutionize transportation by offering small electric aircraft capable of vertical takeoffs and landings. While the technology promises to reshape how people move, it’s still in its early stages, and obtaining regulatory approval remains a significant hurdle.
Fortunately for Joby, the company has made notable progress. It became the first eVTOL manufacturer to have its certification plans accepted by the U.S. Federal Aviation Administration (FAA), marking a crucial step toward full-scale production. The company’s pilot production line in Marina, CA, is already operational, with ambitions to ramp up production to one vehicle per month by the year-end. Joby is also planning to launch its first commercial service in Dubai by 2025.
Despite these advances, the road to success for Joby and the eVTOL industry is fraught with challenges. Developing the necessary infrastructure, overcoming regulatory roadblocks and gaining public acceptance are all critical hurdles. Moreover, the cost-intensive nature of eVTOL development has forced many companies in the sector to seek additional capital and delay their certification milestones. However, with over $2 billion raised before Toyota’s recent investment, Joby is one of the better-capitalized players, offering a cushion against some of these challenges.
Joby’s Promise and Risks: Should You Invest in the Stock?
Joby’s vertically integrated business model, which includes both manufacturing and service operations, presents significant opportunities for long-term value creation. In terms of market capitalization, Joby is currently valued at nearly three times that of its closest competitor, Archer Aviation (ACHR - Free Report) , highlighting its leadership in the eVTOL space.
For growth-oriented investors with a high tolerance for risk, Joby Aviation represents a compelling opportunity to invest in the future of urban air mobility. The company’s financial strength, combined with Toyota’s backing, positions it well to lead the eVTOL revolution.
However, with commercial production not expected until 2025, Joby’s path to profitability remains distant, and the company is likely to face turbulence as it navigates regulatory approvals, infrastructure development and consumer adoption.
Joby currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2024 loss per share has widened by a penny in the past 30 days to 69 cents, indicating a 12.6% improvement year over year. The company surpassed estimates in three out of the trailing four quarters while matching the same once, with the average earnings surprise being 9.1%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.