Key Points
Joby continues to lead the race toward Federal Aviation Administration certification.
Its urban air mobility business is growing rapidly in preparation for its eVTOL entering service.
It's been a difficult year for electric vertical takeoff and landing (eVTOL) company Joby Aviation (NYSE: JOBY), and despite today's more than 5% increase, the stock is still down more than 37% year to date. That said, the recent second-quarter results and news flow are positive for the stock, and it's no surprise to see it bouncing today.
Joby Aviation's plans
As readers already know, the eVTOL market is surprisingly diversified, with some companies (Archer Aviation) following an original equipment manufacturer (OEM) model, others (Boeing's Wisk) following an all-autonomous eVTOL model. Then there's Joby's vertically integrated transportation-as-a-service (TaaS) model.
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In addition, Joby is largely developing its own technology, although it has significant investment from Toyota, with the auto giant also working with Joby to help scale eVTOL production.
The key to realizing its TaaS plans lies in progressing toward Federal Aviation Administration (FAA) certification and developing the urban air mobility business bought from Blade last year.
Joby Aviation makes progress
The good news is CEO JoeBen Bevirt declared that "we just had our strongest quarter yet in terms of progress on the fifth and final stage of type certification" on the earnings call. Bevirt further confirmed Joby had "five of our electric air taxis in the air, including our first FAA conforming aircraft."
Image source: Joby Aviation.
In addition, Bevirt outlined that regarding Blade, the "core constraint we're facing on many routes is now aircraft availability rather than passenger demand," with the business reporting its best second quarter on record. Joby plans to replace the helicopters, planes ultimately, and other aircraft used by Blade with Joby's eVTOL over time as part of its TaaS model. Given the progress made in the quarter, Joby is on its way.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.