Joby Aviation (JOBY) saw its shares climb nearly 5% on Friday, closing at $10.92 before dipping slightly to $10.90 in after-hours trading. The move came as trading volume exceeded the stock's recent average, with investors positioning ahead of the Memorial Day market closure. Despite the gain, the stock remains about 50% below its 52-week high of $20.95.
The broader market also provided a tailwind, with the Dow Jones Industrial Average reaching its first intraday record high since February, according to Reuters. For Joby, the rally reflects a bet that the company can convert recent flight tests, regulatory progress, and its Blade passenger service into actual air-taxi revenue before investor patience wears thin.
Regulatory and Financial Milestones
In its latest SEC filing, Joby reported that its first FAA-conforming aircraft had flown under Type Inspection Authorization, and it completed its SR3 audit with the Federal Aviation Administration. The company ended March with $2.5 billion in cash, cash equivalents, and short-term investments. However, quarterly revenue came in at $24 million—primarily from its Blade service—against a net loss of $110 million. Cash burn totaled $195 million in the quarter, excluding any new financing. Joby reaffirmed its 2026 revenue target of $105 million to $115 million.
CEO Optimism and Path to Commercial Service
CEO JoeBen Bevirt told shareholders in May that the company now has the “clearest path” yet to passenger service, following demonstration flights in the New York and San Francisco areas. The market is increasingly valuing Joby not on current earnings but on certification milestones and launch timing. Blade CEO Rob Wiesenthal highlighted that “narrow arteries around JFK” account for 70% to 80% of a typical car ride’s travel time, suggesting quick airport hops could demonstrate the value of vertical transport.
Competitive Landscape
Joby is not alone in the eVTOL race. Archer Aviation recently completed Phase 3 of the FAA type-certification process for its Midnight aircraft, while Embraer-backed Eve reported finishing a hover and low-speed flight block ahead of transition testing. Both companies are logging key milestones, underscoring that the eVTOL story extends beyond Joby.
Risks Remain
Joby’s latest quarterly filing cautioned that delays or changes in key authorizations or certifications could prevent it from starting commercial service on schedule. The company also cited significant investment costs, competition, infrastructure hurdles, and an International Trade Commission complaint from Archer as risks to both certification and launch.
For now, shares are riding on progress rather than profits. The next test comes after the long weekend, when the market will shift focus from demo flights to whether Joby can synchronize regulators, infrastructure, and paying customers around the same time.
