eVTOL Stocks Soar: FTAI and JOBY Poised for Takeoff Amid Technical and Regulatory Catalysts

The eVTOL (electric vertical takeoff and landing) sector has long been a battleground between visionary potential and market skepticism. Yet, as 2025 unfolds, two pioneers—Joby Aviation (JOBY) and FTAI Aviation (FTAI)—are emerging as candidates for a long-awaited rebound, driven by technical pattern improvements, shrinking short interest, and regulatory progress. Meanwhile, overbought peers like GE Aerospace face headwinds, making FTAI and JOBY compelling plays for investors seeking undervalued opportunities.

Technical Patterns: Bullish Crossroads

Both stocks are approaching critical technical inflection points.

JOBY (NYSE:JOBY):
- Proximity to Moving Averages: As of mid-June 2025, JOBY's stock price ($9.44) sits well above its 50-day ($7.48) and 200-day ($6.95) moving averages, signaling a buy signal.

- Volume Surge: Trading volume spiked to 40.76 million shares on June 12, 2025, reflecting institutional buying interest. Analysts note a bullish divergence in the MACD (Moving Average Convergence Divergence) indicator, reinforcing upward momentum.

FTAI (NYSE:FTAI):
- Golden Cross Reversal: FTAI's 50-day moving average ($108.9) crossed above its 200-day average ($83.3) in late June, forming a bullish “golden cross”—a historically reliable buy signal.

- Short-Term Volatility: A dip below its 200-day MA on June 27 created a buying opportunity, with the stock rebounding to $124.89 by month-end.

Short Squeeze Potential: Shorts Are Fleeing

Short interest data reveals a strategic retreat by bears, creating fertile ground for a squeeze.

• JOBY: Short interest fell to 12.4% of float in June 2025, down from 18.7% in Q1. This contraction, combined with a 19.5% monthly price gain, suggests shorts are capitulating.
• FTAI: Shorts covering their positions aggressively, with short interest dropping to 7.8%—a multi-year low.

Regulatory Milestones: FAA Approvals Ignite Confidence

The Federal Aviation Administration's (FAA) Type Certification process has been a critical hurdle for eVTOL firms. Both companies have made strides:

• JOBY: Secured a conditional airworthiness certificate in April 2025, paving the way for pilot training and test flights. This aligns with its goal of commercial operations by 2026.
• FTAI: Partnered with NASA to refine battery safety systems, addressing FAA concerns. A key design validation milestone in June 2025 brought it closer to certification.

In contrast, GE Aerospace, while dominant in traditional aerospace, has seen its eVTOL division struggle with delayed certifications and high R&D costs. Its stock remains overbought, with a 14-day RSI of 75+, contrasting sharply with FTAI and JOBY's more sustainable metrics.

Undervalued Options and Institutional Buying

• JOBY's Options: Put-call ratios are skewed toward calls, indicating investor optimism. The stock's price-to-sales ratio of 0.8x is undemanding relative to its $6.86 billion market cap.
• FTAI's Institutional Support: 52.85% of shares are held by institutions, with funds like ARK Invest adding positions in Q2 2025.

Risk Factors and Contrarian Play

• Near-Term Volatility: Both stocks face risks from macroeconomic headwinds and delayed certification timelines.
• Contrast with Overbought Peers: While GE and others trade on hype, FTAI and JOBY offer hard catalysts—technical strength, regulatory progress, and declining shorts—that justify a contrarian bet.

Investment Thesis

FTAI and JOBY are underappreciated gems in the eVTOL sector. Their proximity to key moving averages, shrinking short interest, and tangible FAA milestones position them for a 2025 rebound, especially as institutional buyers step in. Investors should consider:
1. Buying dips near the 50-day MA for both stocks.
2. Long calls on FTAI, targeting $150 by year-end.
3. Avoiding overbought peers like GE, where valuations may crumble under regulatory delays.

The sky is no longer the limit—it's the destination.