Flying cars are about to become a reality.
Joby Aviation stock can soar
Lee Samaha (Joby Aviation): Once the preserve of science fiction novels and movies, electric urban air transport is about to become a reality. The electrical vertical takeoff and landing (eVTOL) and urban air mobility (UAM) market is receiving heavy investment, which is coming from heavyweight aviation players. For example, Raytheon Technologies's corporate venture group has invested in the hybrid-electric propulsion technology company VerdeGo Aero. Honeywell has invested heavily in developing propulsion and avionics , and Boeing has previously invested $450 million in self-flying eVTOL air taxi company Wisk. /Meanwhile, Archer Aviation has a partnership with United Airlines, with the latter planning commercial routes to start in 2025.
As the plethora of names above suggests, the eVTOL/UAM market is highly fragmented, with several potential winners, and one of them includes Joby Aviation, whose backers include Toyota and Delta Air Lines.
It has heavyweight backing, and Joby's management believes it's ahead of the field in terms of the Federal Aviation Administration (FAA) certification process, having completed the second stage of five stages before its competitors.
Joby's management also believes it's also made substantial progress on the third stage (certification plans). Joby is ahead of its field, and while it's extremely tough to predict who the ultimate eVTOL winner will be, the upside potential in the stock is significant. It may suit enterprising investors with risk tolerance.
