Sky Games: Joby Aviation Takes Off

Joby Aviation's shares experienced a remarkable surge last month, driven by growing optimism surrounding the electric vertical takeoff and landing (eVTOL) aircraft industry. A major factor in this rise was a buy recommendation from the analysis firm Needham. This assessment lent a certain legitimacy to the still-nascent industry, which also includes Archer Aviation. So far, Joby has not generated significant revenue, and the advanced aircraft are not yet commercialized. However, Joby aims to change this by 2025. Additionally, in October, the U.S. Federal Aviation Administration (FAA) paved the way for the operation of these new aircraft and established new regulations for integrating eVTOLs into the civil air traffic system. Consequently, the company's share price rose an impressive 86% over the month, according to S&P Global Market Intelligence. Needham set a price target of $8 for Joby and highlighted the strategic partnership with Uber, which was formed through the acquisition of Uber Elevate in 2020. This positioning could give Joby an advantage in the emerging air taxi market, which, according to Needham, could reach an annual revenue volume of $3 billion by 2029. Additionally, Ark Invest, led by Cathie Wood, purchased 304,000 shares of Joby last month, sparking renewed interest from investors. Joby also opened its first vertiport facility in Dubai and conducted its first international demonstration flight in Japan together with Toyota. Joby's stock made a significant jump following the Needham analysis, particularly after November 19. However, December began with a loss of gains as the stock price fell by 9.4% on December 2, a sign that the eVTOL stock rally might be overstated. After the market closed, the stock dropped by another 2.3% following the news that CFO Matthew Field would be moving to competitor Oshkosh.