The stock of electric vehicle start-up Joby Aviation (JOBY) is up 30% on news that the company has received a $500 million investment from Toyota Motor Corp. (TM).
This is the latest investment that Toyota has made in Joby Aviation, which is developing electric air taxis. The new $500 million commitment from Toyota will be used by Joby to help certify and commercialize production of its electric aircraft.
The money from Toyota will be allocated in two tranches this year and next. Joby’s air taxi, which uses electric vertical take-off and landing (eVTOL) technology is viewed by many as “the future of urban air mobility.”
Ready for the Olympics?
Granted, we only just concluded the 2024 Olympic Games, but already, some eyes are looking to the 2028 Olympics in Los Angeles. Joby Aviation’s eyes are on that event as well, as it plans to have its air taxi service ready for the Games.
At least, that is the goal, according to a report in the Los Angeles Times. The report noted that Joby is working to get its aircraft certified in time for use in Los Angeles during the big event, and at the rate it is going, it may well take that long to get it through regulatory hurdles. It will be interesting to see how Joby gets “commercially-rated pilots” to fly its air taxis, especially when we are seeing so many airlines short staffed.
Is Joby Aviation a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JOBY stock based on four Buy, one Hold and one Sell recommendation assigned in the past three months, as indicated by the graphic below. After a 3.18% loss in its share price over the past year, the average JOBY price target of $8.25 per share implies 37.5% upside potential.
