Joby Aviation Faces Big Risks, But Also Big Potential Upside

Joby Aviation has a vertically integrated transportation services business model, which carries additional risks alongside FAA certification risks. The company needs to invest in ramping up manufacturing capacity, vertiports, and operational fleet before generating revenue from air taxis. Wall Street consensus implies Joby will raise cash in 2026, potentially through an equity raise, which may be challenging given its cash burn and starting net cash balance. Boeing's subsidiary, Wisk, also plans to develop eVTOLs and offer air taxi services, potentially threatening Joby's long-term business model.