Cathie Wood Is Loading Up on This Air Taxi Stock -- Should You Follow Her Lead?

Ark Invest, led by Cathie Wood, targets high-growth, disruptive, innovative, early-stage companies, including developers of electric vertical takeoff and landing (eVTOL) aircraft, which have the potential to upend urban transportation as we know it.

In May, Ark Invest purchased 119,000 shares of Joby Aviation (NYSE: JOBY). The move comes as Joby made its first successful test flight across New York, proving its eVTOL technology. Should investors follow Wood's lead?

Ark Invest owns 6.3 million shares of Joby Aviation across its ETFs

While most institutional investors reveal their positions when they file quarterly 13-F filings with the Securities and Exchange Commission (SEC), Ark Invest provides full transparency into its daily trades, giving investors insight into its investments.

On May 18, Ark Invest purchased shares of Joby Aviation, which was split among the ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) and the ARK Space & Defense Innovation ETF (NYSEMKT: ARKX). Following the purchase, Ark Invest now owns nearly 6.3 million shares of Joby Aviation across these two ETFs.

Joby Aviation investors have reason to be optimistic. In April, the eVTOL company flew its flagship aircraft from JFK International Airport to three Manhattan heliports. The flight demonstrated the readiness of Joby's aircraft and proved it can be a significant time-saver, flying from the airport to downtown Manhattan in just seven minutes.

Image source: Joby Aviation.

This comes as the U.S. government pushes to accelerate the development and launch of eVTOL aircraft through its eVTOL Integration Pilot Program (eIPP). The eIPP aims to speed up traditional approval processes, enable companies like Joby and competitor Archer Aviation to work with state and local governments, and help the Federal Aviation Administration obtain real-world data on safety, noise, and traffic integration by testing urban operations before full commercial certification.

What's next for Joby Aviation

Joby is working through the FAA certification process to obtain Type Certification, the regulator's seal of approval confirming that the aircraft's design is safe for commercial passenger use. Joby hopes to achieve this no later than mid-2027. In addition, the company will look to run more test operations across 11 partner states, including cargo delivery and medical response in Florida and North Carolina. It also aims to launch its air taxi service in Dubai by the end of this year, though the conflict in the Middle East could affect that timeline.

The company is developing exciting air taxis that feel like something out of science fiction. Joby is laying the groundwork right now, including scaling up its manufacturing ability. It has also partnered with Uber Technologies and purchased Blade Air Mobility's passenger business, giving it control of Blade's heliport lounges and terminal footprints in dense metro areas like New York City.

Joby has a first-mover advantage in the eVTOL space. That said, it is still a speculative, early-stage start-up in a brand new industry that will take time to develop, making it a stock best suited for aggressive investors willing to hold for the long haul.

Courtney Carlsen has positions in Archer Aviation and Joby Aviation. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.