Sky’s the limit…or is it?
Joby Aviation (JOBY) has been cleared for takeoff toward a new reality for the transportation industry. The FAA has given the green light for the electric vertical takeoff and landing (eVTOL) company to test its flying taxi prototype.
This marks a significant milestone in the journey to make airborne commuting a commercial possibility by 2025. And it isn’t a mere trial balloon. Joby’s first production-line prototype will be thoroughly tested under a $131 million Department of Defense contract.
Aiming for Altitude
Turning science fiction into reality is not a solo flight, which is why Joby is teaming up with industry heavyweights to achieve its lofty goal.
The company’s roadmap includes delivering two aircraft to California’s Edwards Air Force Base in 2024. By the following year, it aims to provide commercial passenger services.
A strategic alliance with Delta Airlines (LUV) is also already on the books. The partners plan to use Joby’s flying vehicles to shuttle passengers to and from airports. It’s not just Delta lending wings to this venture. Joby’s lead investor Toyota (TM) provided $400 million for the project and plans to supply crucial manufacturing components as well.
Joby is not the only company seeing its taximeters tick sky high. The thrill around the prospect of eVTOLs as a commercial reality has fueled interest in related stocks, including Archer Aviation (ACHR), Lilium (LILM), and Eve Holding (EVEX).
While US companies Joby and Archer are both based in California, eVTOLs are flying overseas as well. With Germany’s Volocopter planning to provide air shuttles for the 2024 Paris Olympics, this once futuristic concept is poised to become a present-day reality.
According to the investment banking firm Canaccord Genuity (CCORF), the eVTOL industry could morph into a rideshare-like sector. Will we soon live in a world where ordering a flying taxi is as commonplace as calling a Lyft or an Uber? The only way to know for sure is to keep an eye on the sky.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.