Down 53% From Its Peak, Is It Finally Time to Buy Joby Aviation?

Joby Aviation (NYSE: JOBY) is one of the companies leading the charge in electric vertical takeoff and landing aircraft (eVTOL). These vehicles have the potential to revolutionize urban transportation as we know it, allowing passengers to hail an air taxi and fly above the city, bypassing gridlock below.

The company made some big news recently due to its partnership with Uber and is getting closer to launching passenger flights later this year. With the stock down 53% from its all-time high, is now the time for investors to jump into Joby Aviation?

Image source: Joby Aviation.

Joby has partnered with Uber for its air taxi services

Uber recently introduced "Uber Air powered by Joby," an early look at how customers will be able to book a Joby air taxi directly within the Uber app. The move helps Joby build on its position in the industry following its acquisition of Blade Air Mobility, an urban air mobility platform that offers helicopter, seaplane, and jet flights, and will eventually include eVTOL aircraft.

By partnering with Uber, Joby can drastically lower customer acquisition costs, as customers can easily book rides through the Uber app. This will be crucial as the company begins its commercial operations later this year. Uber customers can book their flights in the Uber app and have a ground vehicle pick them up and take them to a Blade departure lounge, where they can take a short five- or 10-minute flight to their destination.

The eVTOL company is getting closer to commercial operations

Joby is targeting this year for its initial commercial passenger operations in Dubai, United Arab Emirates. The company expects construction of its first vertiport at Dubai International Airport to be completed by the end of the first quarter. In addition, it has agreements with Red Sea Global and The Helicopter Company for pre-commercial evaluation flights in Saudi Arabia in the first half of this year. However, the commercial launch is now dependent on a de-escalation of the current military situation in the Middle East. If the conflict persists, it could delay Joby's 2026 launch timeline in the region.

The company is also hoping to launch in the United States as soon as this year. It expects to launch these operations, which include commercial cargo and medical transport services, under the U.S. government's eVTOL Integration Pilots Program (eIPP). This program is part of the government's strategy to accelerate the commercial use of electric air taxis, bypassing traditional bottlenecks and allowing mature aircraft to fly in real-world environments while final certifications are processed.

A bet on the future of transportation

To scale up commercially, Joby Aviation needs to increase its production capacity. It currently operates a facility in Marina, California, dedicated to manufacturing, machining, and aircraft assembly. It also entered an agreement to acquire a manufacturing facility in Dayton, Ohio, with the goal of doubling its U.S. production capacity to four aircraft per month by 2027. In the long term, it expects the Dayton facility to be capable of delivering up to 500 aircraft per year.

Joby Aviation is moving forward with exciting transportation technology that could revolutionize travel as we know it. The company still has a lot of work ahead, including launching commercially, which may be impacted by regional instability in the Middle East, obtaining the necessary FAA certifications, and scaling up manufacturing. That said, if you're optimistic about the future of air taxis and have a high tolerance for risk, the lower price point today makes Joby stock an appealing buy.

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