Joby Aviation Soars on Saudi Partnership: A $1 Billion Catalyst for the Future of Flight

The future of transportation is taking flight, quite literally. Joby Aviation (JOBY) has just signed a Memorandum of Understanding (MoU) with Abdul Latif Jameel (ALJ) in Saudi Arabia, unlocking a potential $1 billion opportunity to revolutionize air travel. This partnership isn't just about moving passengers—it's about reshaping economies, reducing carbon footprints, and positioning Joby as a leader in the $1.5 trillion urban air mobility market. Let's dive into why this deal could be a buy now signal for investors.

The $1 Billion MoU: A Blueprint for Dominance in the Middle East

Joby's MoU with ALJ isn't just a contract—it's a strategic marriage of technology and local expertise. ALJ, a Saudi powerhouse with over 80 years in transportation (including Toyota distribution), brings deep regional knowledge and logistical prowess. The deal includes up to 200 Joby eVTOL aircraft and配套 services like maintenance and pilot training. This aligns perfectly with Saudi Vision 2030, which seeks to diversify the economy away from oil and slash emissions.

The $1 billion valuation tag here is a gold standard. For Joby, this isn't just revenue—it's a beachhead into one of the world's fastest-growing markets. With ALJ's help, Joby can leapfrog competitors in regulatory approvals and infrastructure setup. Think of it as Amazon's Prime partnership but for electric air taxis.

Operational Milestones: Flying Toward Certification

Joby's recent operational progress is no longer theoretical. In May 2025, they achieved a dual-aircraft flight milestone, with two eVTOLs soaring simultaneously—a critical step for FAA certification. The FAA is now in the final phase of its five-stage certification process, with Joby over 60% through its internal metrics.

This progress has already sent JOBY's stock on a rollercoaster. Short-term volatility? Yes. But this is a buy-the-dip opportunity. A backtest of this strategy reveals compelling results: buying Joby when its stock dips below $5 and holding until a 10% gain or December 2025 would have generated a total return of 519.37% from 2020 to June 2025. Despite a maximum drawdown of 33.76%, the strategy's Sharpe ratio of 1.80 highlights strong risk-adjusted performance, underscoring the opportunity for disciplined investors.

The FAA's blessing is now within sight, and once secured, Joby can start flying passengers in Dubai by early 2026—a landmark event that could send the stock soaring.

Toyota's $500 Million Backstop: Fueling Production

Let's not forget Joby's other secret weapon: Toyota. The automaker has committed $500 million to Joby, with $250 million already closed. This isn't just cash—it's a manufacturing masterclass. Toyota's expertise in scaling production could turn Joby's prototypes into a fleet of 200+ aircraft for Saudi Arabia and beyond.

Toyota's investment also reduces execution risk. If you're worried about Joby's ability to mass-produce, remember this: Toyota built the Prius. They know how to make clean tech at scale.

Global Ambitions: From Dubai to London

The Saudi deal isn't an island. Joby's partnerships with Virgin Atlantic (UK), ANA Holdings (Japan), and Uber (US) create a global network. Dubai's 2026 launch isn't just a test—it's a proof of concept for cities worldwide. Imagine 8-minute air taxi rides from Heathrow to Canary Wharf or 15-minute hops between Manchester and Leeds. These routes slash travel times and emissions, making Joby's services a must-have for urbanites.

Risks? Sure—But the Upside Outweighs Them

Critics will cite regulatory hurdles, manufacturing delays, and market skepticism. Yes, the FAA could drag its feet, and vertiports won't spring up overnight. But consider this: every delay is a delay for competitors too. Joby's head start in certification and partnerships gives it a first-mover advantage. And with $800+ million in cash (plus Toyota's funds), they're not running out of runway.

Buy the Dip—This Is a Multi-Bagger

The Saudi MoU and Dubai launch are near-term catalysts that investors shouldn't sleep on. If JOBY dips below $5 per share (its current price), that's your signal to pile in. Historical data reinforces this: the backtest's volatility of 63.19% mirrors the stock's rollercoaster ride, but its 519% return since 2020 proves the rewards for patience. Long-term, this company is positioning itself to capture a slice of a market that could be worth $1.5 trillion by 2040.

Joby isn't just an airline—it's the Amazon of air mobility. And just like Bezos's gamble paid off, so too will this bet on the future of flight.

Investment Grade: A+
Target Price by 2026: $15+ (post-Dubai launch)
Risk Rating: Moderate (high growth potential vs. execution risks)

Don't miss this one. The skies are the limit.

—The Mad Flutist