Joby Aviation's Different Approach: Will it Pay Off?

Joby Aviation is a leading eVTOL company with a unique business model, focusing on in-house technology development and a vertically integrated transportation company. Its partnership with Toyota and significant investment from Uber and Delta Air Lines reduces risk. While its approach is deemed riskier than competitors like Archer Aviation, Joby's progress in de-risking its business and Toyota's involvement make it an attractive investment opportunity.

Joby Aviation (NYSE: JOBY) stands out in the crowded electric vertical take-off and landing (eVTOL) market with a business model that differs significantly from its peers. The company's strategy involves in-house technology development and a vertically integrated transportation company, setting it apart from competitors like Archer Aviation (NYSE: ACHR) [1].

Joby Aviation's approach includes developing its own powertrain and electronics manufacturing facility in California, unlike competitors who often rely on partnerships with leading aerospace and automotive companies. This "go it alone" strategy, backed by a significant investment from Toyota, reduces the risk associated with technological development [1].

Moreover, Joby Aviation plans to own and operate its aircraft, aiming to become a vertically integrated transportation company. This model is more risky but aligns with the company's goal of commercializing transportation services itself. Investments from Uber and Delta Air Lines further support Joby's vision, with Uber investing $125 million and Delta Air Lines investing up to $200 million [1].

The eVTOL market is expected to grow significantly, with analysts forecasting a CAGR of +28.9% to $61.86B by 2034. Joby Aviation's progress in de-risking its business and its strategic partnerships position it as a strong candidate for long-term growth. While its business model is riskier than competitors, Toyota's involvement and Joby's focus on reducing uncertainty make it an attractive investment opportunity [2].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/HON/pressreleases/33672111/could-buying-joby-aviation-stock-today-set-you-up-for-life/
[2] https://seekingalpha.com/article/4804856-joby-aviation-top-gun-among-evtols-do-not-chase-over-the-cliff