Joby Aviation stock surged to $9 on Wednesday, its highest point since January this year, and 78% from its lowest level this year. This surge brought its market cap to over $7 billion, making it the biggest eVTOL company in the US.
Toyota invests in Joby Aviation
The main catalyst for the Joby Aviation stock price was that it received an investment from Toyota, the biggest automaker by sales. It gave it $250 million as part of a larger investment it announced in 2024. In a statement, the company’s CEO said:
“With this capital and Toyota’s legendary production expertise, we’re enhancing our ability to scale cutting-edge design and manufacturing to meet the demands of our partners and customers.”
The investment will help the company add more money to its balance sheet as it works towards its certification process.
Most importantly, the relationship will help Joby Aviation in its manufacturing process. This is notable since Toyota is known as one of the best players in the manufacturing industry.
Joby Aviation has made a lot of progress on its certification process. It has completed the first and third stages of certification basis and certification plans. It has moved to 97% in the means of compliance certification stage and 62% in the testing and analysis.
Joby hopes to complete these certification stages, including show & verify later this year. To achieve that, it has manufactured five aircraft that are in its testing process.
Joby is also working on ramping up production when the certification process ends. It is set to receive its expanded manufacturing facility in Marina, which will double its output.
Recent JOBY earnings download
The most recent results showed that Joby Aviation ended the last quarter with $813 million in cash and short-term investments. Including Toyota’s commitment of $500 million, the company has $1.3 billion in cash, which removes the need for fundraising in the near term.
Joby Aviation made a net loss of $82.4 million in the first quarter, a big improvement from the $94.5 million it lost in the same period last year.
The company hopes that its business will thrive in the coming years. It has already secured customers from companies like Virgin Atlantic, Delta Air Lines, Abu Dhabi government, and the US military.
Its advantage is that its business will likely be a duopoly in the United States, where it will compete with Archer Aviation.
The challenge, however, is whether its air taxi business will have enough demand and become profitable.
Joby aims to build its aircraft and operate an air taxi business in key cities. It will also offer aircraft leasing and sales. These are all novel strategies, and it is not clear whether it will be successful.
Joby Aviation stock price analysis
The daily chart shows that the Joby Aviation share price bottomed at $4.97 on April 7 after Trump announced his retaliatory tariffs. It then bounced back as US equities rebounded, with the rally accelerating on Wednesday.
The stock moved above the key resistance level at $7.68, its highest point on July 16 last year. It has jumped above the 50-day and 100-day Exponential Moving Average (EMA).
Therefore, the most likely scenario is where the JOBY share price continues rising and hits $10, and then drops and retests the support at $7.68. Retesting that support would be a sign of a bullish continuation.
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