Joby Aviation (JOBY) is buying Blade Air Mobility’s (BLDE) helicopter ride-share business for up to $125 million to speed up its launch of electric air taxis. The deal, coupled with a new defense partnership with L3Harris (LHX) to co-develop a hybrid VTOL aircraft for military use, helped boost investor sentiment. JOBY stock surged 22% on Monday’s regular trading session.
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Under the terms of the deal, Joby will take over Blade’s passenger business in the U.S. and Europe, including its lounges, terminals, and brand. After the deal closes, Blade will keep running as a separate company based at Joby’s headquarters in Santa Cruz, California.
Importantly, Blade’s network carried more than 50,000 passengers last year and includes 12 major terminals in New York and Southern Europe. Thus, the deal will help Joby gain access to top locations such as Newark and Manhattan heliports to support its air taxi launch.
It must be noted that $35 million of the total purchase price depends on meeting performance targets and employee retention. The deal is set to close soon, pending routine approvals.
What’s Next for JOBY?
Looking ahead, Joby plans to begin commercial passenger service in Dubai in 2026, using Blade’s infrastructure and customer base to accelerate rollout. Also, the company is preparing for FAA Type Inspection flight testing in early 2026, a key milestone toward full certification of its eVTOL aircraft.
To support future demand, Joby is also scaling up production. It’s expanding manufacturing facilities in California and Ohio, and has signed a deal to sell up to 200 aircraft in the Middle East through a partnership with Abdul Latif Jameel, a Saudi Arabia-based conglomerate.
Is JOBY Stock a Good Buy?
Turning to Wall Street, JOBY stock has a Moderate Buy consensus rating based on three Buys, two Holds, and two Sells assigned in the last three months. At $9.50, the average Joby Aviation stock price target implies a 54.25% downside potential.
