Flying cars have long been synonymous visions of a far-off, science fiction-inspired future, where individuals and families can jump over traffic jams – saving time, money, and angst. While great in theory, is this realistic? While the jury is still out, Joby Aviation (NYSE:JOBY) is among those companies working to turn this vision into a reality.
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The eVTOL company has created an electric aircraft that can transport five people at speeds up to 200 miles per hour. JOBY has over 40,000 miles of real-world flight testing to back up its models, and has managed to progress to the fifth and final stage of Federal Aviation Administration testing.
Recently, JOBY announced plans to expand its manufacturing capabilities in its Marina, California facility, with aims of producing 24 aircraft annually beginning in 2026. The company ended Q1 2025 with $813 million in cash, giving the pre-revenue company a cushion to pursue these opportunities.
The market has noticed JOBY’s advances, and its share price has surged by over 200% during the past three months.
Though regulatory, technical, and public perception risks remain, one investor known by the pseudonym Undercovered Deep Insights, believes there are plenty of reasons to be bullish.
“Joby Aviation is the best-capitalized eVTOL leader, boasting regulatory progress, strong partnerships, and a vertically integrated ride-hailing model for urban air mobility,” explains the investor.
Looking ahead, Undercovered points out that the total market could be $1 trillion by 2040, an exceptionally lucrative incentive. Beyond manufacturing, the investor notes that JOBY might even eventually compete with taxis and other car ride-sharing services.
“Instead of relying on just planes, Joby is running the service. Over the long term, that will be a significantly heavier lift up front, but a potentially higher-margin model,” adds Undercovered.
Though there are other players in this field, the investor is confident that JOBY has the inside track due to its “capital, certification lead, and partnerships,” citing collaborations with Delta, Toyata, Uber, and the U.S. military.
However, that’s not to say there won’t be turbulence up ahead. Certification hiccups, production challenges, and competition, among other threats, are circling. That being said, Undercovered remains undeterred.
“While it remains pre-revenue and faces plenty of risks, the upside could be immense for those willing to stomach the volatility,” concludes Undercovered, who rates JOBY a Buy. (To watch Undercovered Deep Insights’ track record, click here)
Wall Street has a bit of a mixed view of JOBY at present. While its 3 Buys, 2 Holds, and 1 Sell give it a Moderate Buy consensus rating, JOBY’s 12-month average price target of $10.00 has a downside of more than 40%. (See JOBY stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.