Joby Aviation Stock Soars 169% In 3 Months: What's Driving The Surge?

Joby Aviation (NYSE:JOBY), a pioneer in electric vertical takeoff and landing (eVTOL) aircraft, has seen its stock price surge, reflecting growing investor confidence in its commercialization prospects.

The stock has climbed 92% year-to-date and a remarkable 169% in the last three months, significantly outperforming the NYSE Composite Index, which gained 7% and 11% respectively over the same periods.

Joby initially entered the public market in 2021 through a Special Purpose Acquisition Company (SPAC) merger. The company currently generates most of its revenue from flight services under U.S. government contracts and early commercial operations, particularly with the Air Force.

Also Read: Boeing, Joby Aviation, Oracle And A Health Care Stock: CNBC’s ‘Final Trades’

However, Joby’s long-term strategy centers on a significant revenue expansion through the launch of commercial air taxi services using its eVTOL aircraft.

This ambitious plan is now being underpinned by substantial progress in manufacturing and a supportive regulatory environment. The stock’s recent ascent of over 61% in the past 30 days highlights the positive market reaction to these developments.

Bolstering Production Capacity

Joby’s stock received a notable boost on Tuesday following the announcement of expanded manufacturing operations at its facilities in California and Ohio, alongside the addition of new aircraft to its fleet.

The company has effectively doubled its production capacity at the Marina, California site, which now spans 435,500 square feet.

Concurrently, operations have been ramped up at its Dayton, Ohio facility, focusing on the production and testing of aircraft components.

This expansion is crucial for Joby’s push towards scaling commercial operations. The Marina site is projected to produce up to 24 aircraft per year, a significant step towards mass production.

Furthermore, this facility will serve as a hub for flight testing, pilot training, and critical Federal Aviation Administration (FAA) certification processes.

Eric Allison, Joby’s Chief Product Officer, emphasized the company’s readiness for rapid scaling, noting the swift airworthiness certification of their sixth aircraft just one week after its completion.

Joby also plans to leverage the renowned manufacturing expertise of Toyota Motor (NYSE:TM), a key investor, to eventually build up to 500 aircraft annually at the Dayton facility.

Regulatory Tailwinds Propel Growth

The positive momentum in Joby’s stock has been further amplified by a favorable shift in the regulatory landscape. On June 11, President Donald Trump’s new executive orders, aimed at reasserting America’s aviation leadership, provided a significant boost.

These orders seek to streamline regulatory processes and include initiatives like the eVTOL Integration Pilot Program, designed to accelerate the commercial deployment of electric air taxis.

This move triggered a rally across aviation stocks, with Joby shares rising over 2% immediately after the announcement. The White House’s commitment to fostering domestic drone and eVTOL development directly aligns with Joby’s mission, potentially expediting its market entry and unlocking substantial long-term growth opportunities across defense, cargo, and urban mobility sectors.

Adding to this regulatory support, in June, FAA Acting Administrator Chris Rocheleau publicly reaffirmed the agency’s dedication to the safe integration of electric air taxis into U.S. airspace.

This statement served as a vital regulatory endorsement for Joby, which is actively developing a five-seat electric aircraft for global passenger service, backed by strategic partners such as Toyota and Delta Air Lines (NYSE:DAL).

The FAA’s clear stance reinforces Joby’s path to commercialization as it spearheads the transformation of urban transportation.

Expert Insights

Recent expert opinions and company milestones further underscore Joby’s promising trajectory. A Hunterbrook Media report last week indicated significant progress, claiming Joby has discreetly begun testing a long-range, hydrogen-powered Unmanned Aerial Vehicle (UAV) dubbed the JAI 30.

While Joby has not officially confirmed this project, flight tracking data, though briefly accessible online before being removed at the company’s request, suggested the JAI 30 has already completed a flight exceeding nine hours, positioning it among the longest-endurance hydrogen UAVs in its class.

Another notable endorsement came last week from Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, who selected Joby as his “final trade” on CNBC.

This pick followed Joby’s recent announcement on June 30 of successfully completing piloted vertical takeoff and landing flights of its electric air taxi in Dubai.

This achievement marks a crucial step toward launching commercial service in the region by 2026, a development that saw the stock reach its 52-week high.

In July, when questioned about Joby, CNBC’s Jim Cramer expressed confidence, stating, “Archer (NYSE:ACHR) and Joby, what can I say? I’m not going to fight them.”

Price Action: JOBY stock is trading higher by 15.1% to $15.98 at last check Wednesday.

Read Next:

• XPeng Founder Reveals Bold Plan To Hire 8,000 More By 2025