JOBY Stock Hits Four-Year High amid Plans to Double Aircraft Production

Joby Aviation (JOBY) is expanding its manufacturing facility in California after successfully completing a test flight of its electric air taxi in Dubai. As a result of this news, Joby’s stock is rallying at the time of writing and now sits at a new four-year high, as this move shows that the company is serious about scaling production in order to launch its electric vertical takeoff and landing (eVTOL) aircraft to the public. Indeed, the California facility will increase to 435,500 square feet and will be able to produce 24 aircraft per year, which is twice as many as it can currently produce.

In addition to making aircraft, the site will handle FAA production certification, parts and flight tests, pilot training simulators, and aircraft maintenance. This expansion also improves Joby’s overall manufacturing network, which includes its upgraded site in Dayton, Ohio. Unsurprisingly, Chief Product Officer Eric Allison stated that the company needs both speed and precision in order to make urban air mobility a reality, and the expanded operations are a key part of that plan.

Along with building out its infrastructure, Joby has also made major progress in flight testing. In fact, the company recently completed a piloted vertical takeoff and landing, which sets the stage for future deployments in Abu Dhabi and major U.S. cities like Los Angeles and New York. Overall, investors are definitely pleased with Joby’s progress, as its stock has risen more than nine times as much as the S&P 500 (SPY).

Is JOBY Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on JOBY stock based on three Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average JOBY price target of $10 per share implies 26.5% downside risk.

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