Investors Bet on eVTOLs

Joby Aviation Shares Climb on First Day of Trading

Joby Aviation (JOBY), an electric air-taxi startup which debuted on the New York Stock Exchange Wednesday via a SPAC deal, has seen shares surge. Investors are betting on growth for the green travel industry.

Joby Aviation was acquired by blank-check company Reinvent Technology Partners in February. It was valued at $4.5 billion. The deal gave Joby over $1 billion which it is using to build electric aircraft, bring its air-taxi service to the US, and gain certifications with the Federal Aviation Administration.

Joby to Launch Air-Taxi Service

Joby Aviation launched 12 years ago, aiming to make air travel greener by developing electric aircraft which could replace helicopters. Known as eVTOLs, Joby is aiming to offer its service by 2024. Joby’s eVTOL will be able to carry four passengers plus a pilot and go 150 miles on one charge, reaching speeds of 200 miles per hour. Joby’s main source of revenue will be air taxis but it also wants to sell green credits to other aviation companies looking to offset their carbon emissions.

Joby is different from other eVTOL manufacturers in the marketplace. In addition to building aircraft it also wants to operate an air-taxi service including charging stations in the US and elsewhere.

Airline Operators Eye the Market

Joby is not the only eVTOL startup to get interest from investors. With the major airlines looking for ways to lower their emissions, they are increasingly eyeing eVTOLs. In February, United Airlines (UAL) took part in a fundraising round in Archer Aviation, an eVTOL startup going public via a SPAC deal with Atlas Crest Investment (ACIC). Meanwhile American Airlines (AAL) made an investment in rival Vertical Aerospace in June. The latter already has pre-orders for as many as 1,000 eVTOLs. American plans to be one of the initial customers.

With the world committing to lower emissions, demand for eVTOLs is expected to increase. It will be interesting to watch which startups emerge as the leaders and which airline operators will be first to add eVTOLs to their fleets.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

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.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. 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 Adviser
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.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender