Latest news with #JobyAviation
Chicago Tribune
7 hours ago
- Automotive
- Chicago Tribune
These flying taxi companies want to soar over gridlock — for the cost of an Uber
DETROIT — On a recent morning downtown, Eric Allison hopped into the backseat of a sleek six-propeller air taxi and began to explain his company's vision for the future of transportation. Imagine pulling up your Uber app, said Allison, the chief product officer for Joby Aviation, and ticking a 'Joby' option. A car soon arrives and shuttles you to a nearby vertiport. A few other rideshare folks are waiting there, too, and four of you pile into the eVTOL, short for electric vertical takeoff and landing aircraft, along with a pilot. The 20-mile or so journey over a gridlocked city — perhaps to an airport, where you'll catch a flight — is quiet and quick, as the aircraft takes off like a helicopter before transitioning to airplane mode. After touching down, it's a short walk to your gate. The cost of this convenience, potentially shaving hours of travel time, is expected to be a fraction of the cost of a helicopter ride today. Allison said the aim is for prices on par with Uber Black, the luxury vehicle pickup service. 'The advantage of this is you get the speed, and efficiency, and quietness of an airplane, and you get the kind of runway-dependence flexibility of a helicopter,' said Allison, a former Uber executive and NASA aeronautics adviser. 'Both of these are really important for going after this air taxi market that we're designing this for.' eVTOLs are finally nearing commercial reality — at least in certain restricted environments. The Joby five-seater that was tucked away behind the new Hudson's Detroit complex earlier this month for a gathering of tech, manufacturing and defense executives was just a display model. But other aircraft from the Santa Cruz, California-based company are undergoing rigorous testing. The company recently completed its first transition flights with a pilot onboard, and hopes to transport passengers next year in Dubai. Archer Aviation, another California-based electric air taxi startup at a similar stage as Joby, also attended the Reindustrialize summit. CEO Adam Goldstein said on stage that his firm aims to sell its first aircraft for use in Abu Dhabi later this year, though he acknowledged passenger rides wouldn't occur right away. Archer is also a partner for the 2028 Los Angeles Olympics, where the company hopes to fly dignitaries and athletes around the city. 'The core concept was always, 'Where are my flying cars?'' Goldstein said. 'And the goal is to bring that dream to reality this year.' Yet there remain major hurdles to overcome for the fledgling industry — which already has watched several well-funded startups go belly-up — before air taxis are crisscrossing major cities. On the technology side, eVTOL companies are working to improve their lithium-ion batteries, given the huge power requirements necessary for an aircraft to hover, said Blake Stringer, who directs Ohio State University's Center for Aviation Studies. A number of challenges have little to do with the aircraft designs themselves, according to the mechanical and aerospace professor who has studied eVTOLs for years. More real-world testing is needed to better understand the vehicles' limits around things like heat or fog, and heavy air traffic. Costly ground infrastructure will need to be installed, like chargers and vertiports, with logistical plans developed for quick turnaround times. Air traffic control systems for air taxis will need to be established. Stringer said this new type of aircraft won't be able to rely on the existing federal air traffic control system, which is already overburdened and grappling with several accidents and close calls this year. Finally, he said, a new crop of pilots and maintenance workers must be recruited to keep fleets of eVTOLs humming. 'I would predict we're at least five years away from seeing these in routine operations, in large urban areas,' Stringer said. For the industry to really take off around the country, he added, a large infusion of government support will likely be needed. Policymakers and regulators do appear to be increasingly focused on eVTOLs. The FAA is working through a years-long process of design, production, and operational certifications with companies including Joby and Archer to ensure the new types of aircraft are safe to carry people. President Donald Trump last month signed an executive order creating a pilot program for testing 'flying cars,' a development that Goldstein said could help accelerate the approval process. 'It signaled to the FAA that this is a clear priority from the administration,' Goldstein said in an interview. 'The FAA has to decide which programs to work on — they have limited resources, and so it gives them the ability to focus on this. It also gives everybody else, all the partners, the trust that this industry is coming.' Michigan hopes to be a player in the growing drone and eVTOL industry. As Reindustrialize was going on, Gov. Gretchen Whitmer signed a directive creating the Advanced Air Mobility Initiative, which is supposed to help the state grow its expertise in drones and eVTOLs. Among the initial projects funded: $1 million for the University of Michigan to create something called M-Air, which will include a 40-mile research skyway between the Ann Arbor campus and Detroit's Michigan Central Station to test drones and other electric aircraft. In a statement, Whitmer described an intense global competition heating up to develop better aviation and autonomous aircraft, and said Michigan could 'lead the way' for the United States. Air taxi vertiports are likely to be positioned around large cities, executives said, allowing faster trips to the airport or other local destinations. eVTOLs, as their range improves, could eventually serve as transportation between cities — in some instances, potentially adding new routes that wouldn't otherwise be profitable for traditional airlines, said Stringer, the Ohio State professor. But eVTOL companies are also increasingly focused on developing versions of the aircraft for the military. Joby CEO JoeBen Bevirt said his company has been investing heavily in autonomous versions of its aircraft that are powered by a hydrogen-electric system that could stay in the air longer in a war zone. 'We think this is game-changing, being able to build autonomous aircraft that have unprecedented range and endurance, and we think this is critical to national security and defense as we look into the future,' Bevirt said on a panel at Reindustrialize. Archer is similarly developing a hybrid version of its Midnight aircraft and has partnered with defense firm Anduril Industries, which specializes in autonomous military systems. 'In the first innings of this industry, the defense side will be substantially larger,' Goldstein said. 'If you look at the first 10 years, and you look at the amount of aircraft that will need to be built … for the West and its allies, it should be quite a large number of aircraft, and so it could end up being bigger than the civil side. But time will tell.' Joby and Archer have inked partnerships with airlines and ride-hailing services, with the idea that an air taxi ride could eventually be packaged with other modes of transportation that could be booked in an app. Major car companies are also involved: Toyota Motor Corp. in the case of Joby and Stellantis NV with Archer. Both automakers have invested hundreds of millions of dollars in the respective eVTOL companies and are providing hands-on support as they set up manufacturing facilities, executives said. Joby announced this month that it was doubling its aircraft production capacity at a plant in Marina, California, as it looks to build more aircraft for flight tests. It has several other manufacturing facilities, including one in Dayton, Ohio, a refurbished former postal facility that will soon manufacture and test parts, and eventually churn out as many as hundreds of aircraft per year. Archer late last year completed building a 400,000-square-foot factory in Covington, Georgia, and Goldstein said it has started making initial test versions of aircraft. For the Archer CEO, a key junction for his company and the industry's progress, in general, will be the Los Angeles Olympics in three years. Will the company's Midnight aircraft be zipping between venues, skipping over the city's notoriously hellish traffic, on a televised world stage? 'It acts as like a milestone for everybody,' Goldstein said. 'Everybody wants this to happen. … Maybe the helicopter operators don't want this to happen, but everybody else wants this to happen. So the Olympics is a really good way to show that America leads in aviation, that America is building a whole new industry, which will create a lot of jobs.'
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer Say's Believes 'Joby is ahead of Boeing' in Vertical Takeoff
Joby Aviation, Inc. (NYSE:JOBY) is one of the stocks that Jim Cramer weighed in on. Cramer made some positive comments on the company and said: 'Same with Joby Aviation, known to some as the flying car company. I was hesitant to say anything positive about this one. It had gone straight up for six to eight bucks, but then I read that Boeing had a flying car too, one with a vertical takeoff feature, and I believe that Joby is ahead of Boeing, so I recommended it on a small pullback. Next thing you know, the stock's at 17 and change, more than a double. Again, the parabola fear, wrong.' Photo by Yiorgos Ntrahas on Unsplash Joby (NYSE:JOBY) is developing electric vertical takeoff and landing aircraft for aerial ridesharing services. The company also plans to provide an app-based platform for booking air transportation. While we acknowledge the potential of JOBY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Archer, Joby Slide As eVTOL Enthusiasm Wanes
Shares of Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) are trading lower on Monday as enthusiasm around electric vertical takeoff and landing (eVTOL) stocks cools amid renewed investor scrutiny over commercialization timelines, legal risks, and valuation. Both stocks had recently reached new highs amid widespread optimism for eVTOL commercialization, but sentiment has shifted as traders begin locking in gains and reassessing emerging headwinds. Joby, a sector bellwether, surged in July on news of factory expansion, advancements in FAA certification, and piloted flights in Dubai. This momentum pushed the stock to a 52‑week high before a pullback. On Monday, shares are down over 3%, as investors pause to reassess near-term risks. Also Read: Joby Aviation Stock Soars 169% In 3 Months: What's Driving The Surge? That sentiment shift is also weighing on Archer, which was also down Monday. It extended a volatile stretch triggered by a Delaware Chancery Court decision to allow a shareholder lawsuit tied to its 2021 SPAC merger to proceed. Investors are also parsing uncertainty surrounding its partnership with Stellantis. While the automaker remains a manufacturing backer, its recent exit from an unrelated hydrogen fuel project stirred speculation over its long-term commitment to Archer's production plans. Despite Monday's drop, both Archer and Joby remain up year-to-date. Archer continues advancing FAA certification for its Midnight aircraft with backing from Stellantis and United Airlines. Joby is progressing toward a 2026 Dubai launch and expanding U.S. testing. FAA support for eVTOL integration remains a key long-term catalyst. ACHR & JOBY Price Action ACHR is down 2.10% to $10.98, pulling back from its July high near $13.90. JOBY is trading 3.59% lower at $17.45, after topping $18.50 earlier this month. While both stocks remain well above their 52-week lows, they face renewed pressure as investors rotate out of speculative growth plays amid valuation and execution concerns. Read Next:Photo by T. Schneider via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Archer, Joby Slide As eVTOL Enthusiasm Wanes originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
3 days ago
- Business
- Yahoo
Better Buy: Archer Aviation vs. Joby Aviation
Key Points Archer's chance to expand into the defense industry is a huge market opportunity. Joby's differentiated business model gives it upside potential. 10 stocks we like better than Archer Aviation › Go outside and look up the next time you hear an aircraft overhead: You'll see the same airplanes or helicopters you're used to seeing. But that may soon change in certain metropolitan areas. Manufacturers of electric vertical takeoff and landing (eVTOL) aircraft are progressing toward the launch of commercial operations. Recognizing this, investors are paying close attention to eVTOL leaders Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY). Let's see how these two contributors break down the bull cases for each stock. Archer targets commercial and defense applications (Archer Aviation): Taking a two-pronged approach, Archer plans on selling its Midnight eVTOL aircraft directly to operators as well as providing a direct-to-consumer aerial ride-share service. Already, the company has made significant progress in both regards, but what is particularly interesting about its growth prospects is the opportunity as a defense contractor. Archer has inked a number of notable agreements, suggesting the company is well positioned for a quick takeoff once it has received all necessary Federal Aviation Administration (FAA) certifications. In addition to a deal with United Airlines, which will see the carrier purchase up to $1.5 billion in eVTOLs, Archer has signed deals with Abu Dhabi Aviation and Ethiopian Airlines -- both of which are under Archer's Launch Edition program to deploy aircraft in early-adoption markets. The company continues to strengthen its foothold in the civilian market, but it's the possibility of expanding into defense applications that seem particularly alluring. In late 2024, Archer announced the formation of an exclusive partnership with defense contractor Anduril to develop hybrid eVTOL aircraft for crucial defense applications. The goal is securing a potential program of record from the Department of Defense. Should Archer succeed in developing a hybrid eVTOL for defense purposes, the company would also have a sizable opportunity in selling its aircraft to NATO allies. With global tensions remaining high and showing little indication of abating, the ability to offer a hybrid eVTOL aircraft to U.S. allies seems like an auspicious option. Heavyweight backers provide reassurance for Joby investors Lee Samaha (Joby Aviation): Joby Aviation is flying a different route to generating long-term value for investors, but it makes sense and gives the stock more upside potential than its rivals. One differentiating factor is that -- unlike many of its peers, which heavily rely on established companies for technology -- Joby follows a vertically integrated process where it develops components in-house. Moreover, Joby doesn't intend to sell its aircraft to other companies. Instead, it plans to manufacture and operate its aircraft itself while also offering transportation services. It's an ambitious goal that might have seemed unfeasible a decade ago. However, the company has some heavyweight backers, including Toyota, Uber, and Delta Air Lines, which gives cause for confidence. Toyota has committed to investing up to $894 million in Joby and is providing parts as well as helping with its manufacturing. Meanwhile, Uber's investment and Joby's acquisition of Uber's flying taxi business, Elevate, position Joby to scale up transportation services after certification. Delta's investment and partnership will enable Joby to offer airport transfers to Delta passengers -- a value-added service for both companies, as Delta seeks to foster loyalty among its premium customers. All told, Joby's plans have solid backing, and the stock offers substantial upside potential to investors. Is it better to fly with shares of Archer or Joby? Disruptors in the travel industry don't come along frequently, but when they do, investors sit up and take notice. This is the case with both Archer and Joby -- two companies leading the path forward in the development of electric air taxi service. For these upstart companies, there's bound to be some turbulence as they navigate a nascent industry, yet investors with long-term investing horizons may be rewarded with an Archer or Joby investment. For those also interested in defense industry exposure, Archer will be more appealing, while those less concerned with the defense angle may choose Joby instead. Should you buy stock in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy. Better Buy: Archer Aviation vs. Joby Aviation was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Joby Aviation Stock Soars to an All-Time High: My Prediction for What Comes Next
Key Points Joby Aviation stock is soaring on optimism for its electric air taxi network. The company is aiming to ramp up manufacturing and finish its FAA certification. The stock trades at an expensive price versus any reasonable expectations for future revenue. 10 stocks we like better than Joby Aviation › Nobody enjoys sitting in traffic. And yet, the average American will sit in over two weeks of traffic each year. One company believes it has paved a way to help alleviate the traffic pressure in cities around the globe: Joby Aviation (NYSE: JOBY). It is manufacturing and testing electric air taxis, which can go point-to-point over cities more quietly than traditional helicopters, saving people time and frustration. Joby's air taxis are not operational yet, but the stock recently burst through to an all-time high of $17.50 a share on investor enthusiasm for its manufacturing progress and partnerships with large transportation players. It now has a market cap of $14.8 billion even though it generates zero dollars in revenue. Here's my prediction for what comes next with Joby Aviation stock. Betting big on air taxis Utilizing electric motor technology and innovations in aerodynamics, Joby Aviation has created a vertical takeoff vehicle that is quiet enough to leave from residential neighborhoods. It is manned by a pilot, can fit four riders, and has a top speed of 200 miles per hour. The company is planning to set up point-to-point networks in major cities such as New York, where customers will be able to hop from Manhattan directly to the airport, shaving off time that would have been spent sitting in traffic. The company is not officially operating its network yet, but it's working with the Federal Aviation Administration (FAA) in the final stages of testing its aircraft. Multiple pilots have flown the Joby vehicle already, with its manufacturing facilities producing its fifth aircraft for pilots last quarter. Management recently announced an expansion of its factory in California, with plans to eventually produce 24 air taxis annually from this location. Multiple transportation companies have seen the promise in Joby Aviation. Toyota Motors has invested a total of $894 million in the company and is working directly with the company on manufacturing processes. Delta Air Lines is an investor, while Uber Technologies is a partner that will eventually add Joby flights to its ride-sharing application. Joby needs to get a lot of customer demand in order to get a return on its air taxi spending, which will require full operating schedules and high ticket prices. This is possible if its partners such as Uber and Delta drive customers to the upcoming service. The company is not just looking to expand in New York. It is working to add air taxis to Los Angeles, Dubai, and even Japan and the United Kingdom. Most major cities in the world have traffic issues and could see some (especially wealthier) citizens utilize this upcoming air taxi network. Aggressive spending and cash burn There is a lot of promise with Joby's air taxis, but the growth is all theoretical today. Joby does not generate any revenue, is still in the FAA certification process, and has manufactured only a few air taxis to date. Still, it is aggressively burning money on research, manufacturing, and overhead costs as it works to build up its vertically integrated factory network in the United States. In the first quarter of 2025, it spent $134 million on research and development. Over the last 12 months, free cash flow was negative $489 million. The company does have $813 million in cash and a $500 million commitment from Toyota, but this only gives it two to three years of cash burn at its current rate before it will need to raise more funds. My prediction for what comes next with Joby Aviation stock I like the idea of air taxi networks. As long as they can be operated safely, it is a path forward to help alleviate traffic on major highways in metro areas, and it looks like something people will pay up for in order to save time on the way to the airport or other societal hubs. My problem comes from Joby Aviation's market cap of $14.8 billion, making the stock wildly overvalued for a pre-revenue start-up. At its current manufacturing run-rate of 24 air taxis a year that could grow in the years to come, Joby Aviation may have 200 vehicles in operation by 2030. Assuming 20 flights per vehicle per day at $500 each split among the four passengers, that is $730 million in annual revenue for Joby Aviation. It is currently spending close to $500 million a year before generating any sales. There will be variable costs when its taxi network starts operating, along with more money spent to build each vehicle. It is unlikely that Joby Aviation will generate a profit by 2030 even if it can scale up its air taxi routes and charge an average of $500 per flight (which is more than the average round-trip airline ticket for comparable routes). Air taxis are an interesting idea, but that doesn't mean Joby Aviation is a buy with the stock trading at a market cap of $14.8 billion. I predict that pain is ahead for Joby Aviation shareholders for the rest of this decade, even if the company remains on track with its air taxi network buildout. Should you buy stock in Joby Aviation right now? Before you buy stock in Joby Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Joby Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy. Joby Aviation Stock Soars to an All-Time High: My Prediction for What Comes Next was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
