Joby Aviation Is Preparing For Commercial Flights in Dubai. Here's Why I'm Still Not Buying.

Joby Aviation (NYSE: JOBY), a leading developer of electric vertical take-off and landing (eVTOL) aircraft, plans to launch its first commercial flights with Uber (NYSE: UBER) by the end of this year. That sounds like a major catalyst for the stock, but I wouldn't buy Joby's stock on this news alone for three simple reasons.

Image source: Joby Aviation.

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Why won't Joby's Dubai flights move the needle?

First, Joby's flights in Dubai will mark its first commercial flights, but they're not nearly as meaningful as its planned flights for the U.S. market. The Federal Aviation Administration (FAA) still hasn't certified Joby's commercial flights in the U.S. yet, but they could be cleared by the end of 2026. That certification will finally give Joby the green light to mass-produce its eVTOLs in the U.S. and expand its first-party air taxi network with Uber and Delta (NYSE: DAL),

Second, the ongoing military conflicts in the Middle East, which exposed the UAE to missile and drone attacks, could force Joby to delay the launches of its first eVTOLs in Dubai.

Lastly, Joby remains unprofitable and trades at 14 times its 2028 sales. That red ink and high valuation will make it an easy target for the bears if the Fed raises its benchmark rates. So while Joby might still have a bright future, I wouldn't buy it unless the FAA clears its first U.S. flights.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.