Joby Aviation’s Stock Flies High Following Major Toyota Investment

Joby Aviation Inc JOBY recently reached new 52-week highs, propelled by a significant $500 million investment from Toyota Motor Corp TM.

On Monday, the stock surged by over 10% by 10:30 AM ET.

In just the past month, Joby has seen an impressive 54.75% increase, while gaining 42.34% over the last five days. This shift reflects growing market interest in the future of air mobility.

Toyota’s $500 Million Boost

The recent investment by Toyota has generated excitement around Joby. This funding will help the company achieve necessary flight certifications and expand commercial production of its air taxis. The partnership with Toyota has been ongoing since 2019, with nearly $900 million invested in total, establishing Toyota as a key partner in Joby’s journey.

Joby CEO JoeBen Bevirt stated, “Today’s investment builds on nearly seven years of collaboration between our companies.” Toyota is also sharing expertise in manufacturing and process planning to aid Joby in reaching their common goal of sustainable urban air mobility.

A Shift From Helicopters to eVTOLs

Joby’s eVTOL aircraft, featuring six electric motors, represent a green alternative to conventional helicopters. It operates with zero emissions and can reach speeds of up to 200 mph, accommodating one pilot and four passengers. Comparatively, the Airbus AS350 helicopter emits around 950 pounds of CO2 per hour. In contrast, Joby’s aircraft reduce emissions by 52%, even when powered by non-renewable energy.

Investors Gear Up for Joby’s Growth

Joby’s recent price rise has pushed the stock above its short- and long-term moving averages, reflecting a strong bullish trend:

Chart created using Benzinga Pro

• Eight-day SMA (simple moving average): $6.43
• 20-day SMA: $5.76
• 50-day SMA: $5.59
• 200-day SMA: $5.36

Currently trading at $7.80, the metrics suggest a robust outlook. The MACD (moving average convergence/divergence) indicator reads 0.42, signaling strong momentum. Caution is advised, however, as the RSI (relative strength index) is in overbought territory at 74.03.

Looking Ahead: What’s Next for Joby Stock?

Beyond the promising stock performance, Joby is advancing its operational capabilities. It recently completed production of its third aircraft and has begun constructing a new facility in California to double its manufacturing output.

Earlier this year, Joby also captured attention by showcasing its air taxi in New York City.

Needham analysts have started covering Joby with a Buy rating and a target price of $8, citing Joby’s advantageous position in the emerging air taxi market. Regulatory support from the FAA could open doors to a $3 billion market opportunity.

High Hopes Amidst Challenges

With Toyota’s financial support, innovative technology, and a favorable stock trend, Joby stands as a leading contender in transforming short-distance air travel.

Nonetheless, significant challenges remain in securing regulatory approval and achieving practical commercial viability.

For now, Joby’s stock momentum is encouraging, and investors seem eager to participate in this venture.

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Image: Joby Aviation