Latest news with #electricairtaxi
Yahoo
a day ago
- Automotive
- Yahoo
Joby Aviation, Inc. (JOBY) Soars Almost 29% After Securing $250 Million Investment from Toyota
Joby Aviation, Inc. (NYSE:JOBY) stock surged significantly on Wednesday after the electric air taxi developer announced it had received a $250 million investment from Toyota. This funding is part of a previously disclosed $500 million commitment from the automaker, aimed at helping Joby Aviation, Inc. (NYSE:JOBY) move closer to certification and large-scale production of its electric air taxis. Toyota initially revealed the investment plan in October. Joby specializes in electric vertical takeoff and landing aircraft, or eVTOLs, which operate similarly to helicopters. The technology is designed to help ease urban traffic and lower emissions. The new funding adds to Toyota's earlier $394 million investment in Joby during a Series C funding round in 2020. Toyota North America CEO Tetsuo Ogawa joined Joby's board in July 2023, and the company has had a Toyota representative on its board since 2020. CEO and founder of Joby Aviation, Inc. (NYSE:JOBY), JoeBen Bevirt, made the following comment in the release: 'We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design. This is an important next step in our alliance with Toyota to scale the promise of electric flight.' Joby Aviation, Inc. (NYSE:JOBY) closed nearly 29% higher on May 28. While we acknowledge the potential of JOBY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JOBY and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None. Sign in to access your portfolio
Entrepreneur
3 days ago
- Business
- Entrepreneur
Toyota Supercharges Joby: $250M Capital Infusion Ignites Stock
This story originally appeared on MarketBeat [content-module:CompanyOverview|NYSE:JOBY] Joby Aviation (NYSE: JOBY) saw its stock price climb sharply on May 28, 2025. This surge followed a major announcement that has clearly excited investors about the electric air taxi developer's future. The company confirmed it has received the first $250 million part of a larger investment from automotive leader Toyota Motor Corporation (NYSE: TM). This significant funding immediately boosted market confidence, and Joby's shares jumped over 27% to trade around $8.78 during the day. Trading volume was also exceptionally high, with about 67.41 million shares changing hands, far above its average of roughly 12.31 million. The enthusiastic market response underscores the significance of the strengthened partnership with Toyota in Joby's plan to launch its innovative eVTOL (electric vertical takeoff and landing) aircraft. Why Toyota's $250M is a Game-Changer for Joby This $250 million capital injection puts cash in the bank for Joby Aviation, marking a crucial deepening of its strategic partnership with Toyota. This payment marks the first installment of a previously announced $500 million total investment from the automotive giant, underscoring its ongoing and strong support. The money is specifically aimed at two vital areas for Joby: completing the Federal Aviation Administration (FAA) certification for its aircraft and preparing for large-scale commercial production. Both steps are expensive and essential for Joby to start its air taxi service. A Partner's Conviction: Toyota Now Joby's Leading Shareholder [content-module:Forecast|NYSE:JOBY] Beyond providing capital, Toyota has also significantly increased its ownership stake in Joby Aviation as part of this $250 million investment. A director representing Toyota Motor Corporation purchased approximately 49.7 million shares of Joby Aviation stock. These shares were bought at an average price of $5.03 each. This large purchase solidifies Toyota as Joby Aviation's top shareholder. After this transaction, Toyota's total holding in Joby increased by 68.20%, now totaling 122.57 million shares. Toyota's increased investment, ownership, and significant industry expertise and board representation strongly signal market confidence in Joby and its future. Investors can also view this as a powerful insider endorsement. It suggests Toyota strongly believes in Joby's technology, management team, and long-term potential for success. This level of commitment from a global manufacturing leader like Toyota directly strengthens the investment case for Joby, providing a degree of validation that exceeds typical market speculation. Volume and Options Activity Underscore Enthusiasm [content-module:TradingView|NYSE:JOBY] The market's reaction to Toyota's investment was strong and clear. Besides the immediate stock price jump to around $8.78, trading volume was exceptionally high. Over 70 million shares were traded by midday on the day of the announcement, nearly six times Joby's recent average volume. This high volume shows that many investors were actively engaging with the stock following the news. Further highlighting bullish sentiment, there was unusual activity in the options market. The volume of call options increased by approximately 638% compared to normal levels. This suggests that some traders are making speculative bets on Joby's increasing stock price. It is also important to note that after this surge, the company's stock price moved above the average analyst price target of $8.67 that was in place before this Toyota funding news. Analysts often review their financial models and issue updated price targets when a company announces such a significant positive development. This reassessment often leads to the issuance of revised price targets that reflect the potential impact of the new information on the company's future performance and prospects. The Toyota funding news represents a material event that is likely to prompt a widespread review and potential upward adjustment of analyst expectations for Joby Aviation. What Toyota's Backing Means for Joby's Future Toyota's $250 million investment tranche marks a significant milestone for Joby Aviation, providing crucial capital and strengthening a strategic alliance with a manufacturing leader. This partnership is essential for Joby's efforts to scale the production of its electric air taxis. This development significantly reduces the risks associated withalization plans for investor Joby's commercis, as reflected in the positive stock market response. Bolstered by this financial support and a closer manufacturing relationship with Toyota, Joby Aviation is in a stronger position to execute its commercialization strategy and pursue a leading role in the developing urban air mobility sector. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
18-05-2025
- Business
- Yahoo
Archer Aviation Stock Soars: Is It Still a Buy Below $13?
Archer Aviation shares are flying as a result of a new partnership. Yet, the company is still pre-revenue and burning a lot of cash. At least for now, this stock has a lot of risks and little upside. 10 stocks we like better than Archer Aviation › The bull market may be returning. Investors in Archer Aviation (NYSE: ACHR) certainly think so, with the stock shooting up close to 70% in the past month on the back of an optimistic earnings report. The upstart builder of electric air taxis is trying to disrupt the transportation market with its new Midnight aircraft and has orders from governments and corporations around the world. However, the company is still in the certification stage and is not generating any revenue at the moment. With the stock soaring, should investors buy Archer Aviation stock below $13? Let's run the numbers and investigate further. Electric air taxis -- sometimes called eVTOLs -- are aiming to disrupt the transportation market and alleviate traffic in large cities. There are plenty of start-ups trying to build these aircraft, with Archer Aviation being one of the leaders. With advancements in materials and electric propulsion, Archer Aviation's Midnight aircraft can theoretically safely and quietly fly a group of four people above a city, skipping the vehicle traffic below. Initial contracts are set with carriers such as United Airlines and with the city of Abu Dhabi in the Middle East. In New York City, Archer Aviation is planning to have a takeoff site in Manhattan to various airports in the surrounding area, turning what could be a two-hour drive into a 10-minute air taxi ride. With a price tag of around $5 million per vehicle, Archer Aviation is betting that air taxi operators will be able to sell tickets for a pretty penny, especially to wealthier clientele. More excitement is coming from Archer Aviation's recently announced partnership with Palantir Technologies, a stock that growth investors love at the moment. Details of the partnership are scarce. The two companies aim to work on implementing artificial intelligence (AI) into next-generation aviation technologies, which include hardware and software. Investors are excited about the potential of Archer Aviation and its disruptive aviation technology. However, this is a product in the very early stages. The Midnight vehicle is still only through 15% of the Federal Aviation Authority's (FAA) compliance verification documents, and while management says the certification should move quickly throughout 2025, there is still a risk that the Midnight will not get approved for use in the United States. The FAA certification is generally what leads to certifications in other major countries around the world, meaning this is vital for Archer Aviation's business viability. A lot is hinging on the FAA's approval to operate the Midnight aircraft. If it does, then we have full steam ahead to try and build air taxi networks in cities around the world. Until then, the company is going to generate zero revenue and have major free cash flow burn. It has burned $450 million over the last 12 months, causing management to raise money through an equity raise in Q1 of this year. At the end of Q1, it had just over $1 billion in cash on the balance sheet, giving it around two years of runway to get this project off the ground. As a consumer, I hope Archer Aviation's air taxi project gets off the ground (no pun intended). It would provide a valuable service to society and save people time wasted stuck in traffic. As an investor, I do not like the idea of buying Archer Aviation stock. Pre-revenue companies are high risk and barely ever work out for investors. With Archer's market cap at $6.6 billion today and the prospects of more equity dilution down the line, investors are pricing in hundreds of annual orders for the Midnight aircraft today. This means that even if the Midnight is a successful product, the stock will only be fairly valued at today's price. Archer Aviation is losing a ton of money right now. If the FAA delays certification for the Midnight, the company could run into huge liquidity troubles within the next few years, which would crush the stock price. Even if the Midnight is approved, it is not clear what the total demand for air taxis will be in metropolitan areas around the globe. You can only have so many vehicles flying above residential neighborhoods before people and regulators start getting nervous. Operating an air taxi network will require top-notch safety standards with lives at risk. This makes the Archer Aviation stock story that much more difficult to grasp. With minimal upside from today's price and a lot of downside risks, Archer Aviation stock is one to avoid below $13 a share. 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Archer Aviation Stock Soars: Is It Still a Buy Below $13? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
12-05-2025
- Business
- Globe and Mail
Why Joby Aviation Stock Popped After Earnings
Joby Aviation (NYSE: JOBY) stock jumped 6.8% through 10:10 a.m. ET this morning after "beating" earnings last night. Analysts forecast Joby would lose $0.19 per share in its first quarter of 2025, but the electric air taxi company reported a loss of only $0.11 per share. Joby has no revenue, so analysts didn't bother making a revenue forecast -- and Joby reported no revenue. Joby Aviation Q1 earnings Being a pre-revenue company, Joby's "earnings" press release focused on business developments instead. The company noted it has picked a new CFO, Rodrigo Brumana, a veteran of HP, Amazon, eBay"and, most recently, Poshmark." The company said it has made "progress on the certification of our aircraft," and said it has begun "routine transition flights with a pilot onboard the aircraft, marking a critical step toward starting FAA flight testing." Perhaps most importantly, Joby said it ended Q1 2025 with $813 million in the bank, and another $500 million investment from Toyota Motor on the way. Is Joby stock a buy? That's important because, with no revenue and no cashflow coming in from its business, Joby currently has to draw on its cash reserves to keep itself in business as it moves toward having a product to sell. Last year, Joby burned through $487 million in negative free cash flow, a number that's starting to inch higher in 2025. The good news is that, with Toyota's backing, the company still has enough money to keep it afloat for nearly three more years before it runs out of cash. The bad news is that analysts forecast Joby won't turn profitable before 2030 -- five years away. Joby stock remains speculative. If you decide to buy into it, make sure to buy small. Should you invest $1,000 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 10 best stocks 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 $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor 's total average return is909% — a market-crushing outperformance compared to162%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 May 5, 2025
