Joby Aviation Shares Up 1.63% as FAA Certification Advances Drive 259th-Highest U.S. Trading Volume

Market Snapshot

Joby Aviation (JOBY) closed on November 5, 2025, with a 1.63% gain, reflecting positive investor sentiment ahead of its third-quarter 2025 earnings announcement. The stock’s trading volume for the day was $0.49 billion, placing it at the 259th highest volume among U.S. equities. This performance aligns with broader market optimism surrounding the company’s progress in its FAA certification process, as highlighted in multiple news releases. The volume, while not in the top 100, suggests moderate institutional and retail participation, likely driven by the company’s recent operational milestone and the anticipated commercialization of its electric air taxi.

Key Drivers

Joby Aviation’s recent share price movement is directly tied to its announcement of initiating power-on testing for its first FAA-conforming aircraft, a pivotal step in the Type Inspection Authorization (TIA) process. This milestone marks the final phase of the FAA’s Type Certification process, a regulatory requirement for commercial operations. The company emphasized that the power-on testing validates its ability to design and manufacture aircraft in compliance with FAA standards, a culmination of over a decade of engineering and certification work. Didier Papadopoulos, President of Aircraft OEM at Joby, underscored that this phase integrates the company’s design, manufacturing, and certification strategies into a tangible asset, reinforcing investor confidence in its technical capabilities and operational readiness.

The TIA testing involves rigorous collaboration with the FAA, with pilots and engineers validating the aircraft’s performance envelope, including range, speed, and energy management under real-world conditions. Pilots will also assess flight controls, handling qualities across all regimes (vertical takeoff, wingborne cruise, and hover), and maintenance procedures critical for commercial deployment. This process not only ensures safety compliance but also aligns with Joby’s long-term strategy to establish operational protocols, such as pilot training and maintenance manuals, that will govern its commercial air taxi service. The data collected during these tests will directly inform the FAA’s final decision on type certification, a prerequisite for commercial operations.

The timeline for regulatory approval and commercialization has gained clarity following this announcement. Joby expects to begin pilot-led flight testing later in 2025, with FAA pilots taking control in 2026. This phased approach allows the company to address any technical or regulatory gaps before full-scale commercial deployment. Analysts and investors have interpreted this as a de-risking of the company’s timeline, with several noting that the successful completion of TIA testing reduces the likelihood of significant delays. The stock’s 4.6% pre-market surge on November 5, as reported by multiple outlets, further reflects the market’s positive reaction to the news, with some observers attributing the gain to the company’s demonstrated progress toward commercial viability.

Beyond regulatory milestones, the announcement has also bolstered investor sentiment by highlighting Joby’s adherence to FAA-approved quality management systems. The aircraft’s components are built to FAA-designated engineering representative-approved designs and inspected by FAA airworthiness representatives, reinforcing transparency and regulatory alignment. This alignment is critical for a company operating in a high-regulation industry, where public trust and compliance are paramount. The news also positions Joby as a leader in the emerging urban air mobility sector, with its electric air taxi poised to compete with other eVTOL developers. The company’s ability to meet FAA benchmarks could differentiate it from peers, attracting both capital and partnerships in the coming years.

The market’s response to this news underscores the broader theme of investor appetite for high-growth, pre-revenue companies with clear regulatory pathways. While Joby’s current financials remain unprofitable—analysts do not expect profitability in 2025—the stock’s performance suggests that investors are prioritizing long-term potential over short-term earnings. The company’s 189% year-to-date gain, despite a beta of 2.52 indicating high volatility, reflects this dynamic. The recent milestone has likely reassured investors that the company is on track to achieve critical regulatory approvals, mitigating some of the risks associated with its speculative thesis. As a result, the stock’s 1.63% gain on November 5 appears to be a continuation of this trend, driven by the perceived reduction in regulatory uncertainty and the acceleration of commercial timelines.