Joby Aviation's Stock Rallies Amid Flying Car Hype; Top Investor Warns Against "Chasing It"

Joby Aviation stock has rallied 6% today, rising 82% in 2025 and 783% over the past 12 months. The company is positioning itself at the forefront of flying car technology, with commercial flights targeted for 2026 and backing from major names like Toyota and Uber Technologies. However, one top investor, Juxtaposed Ideas, warns that the stock is no longer trading within reasonable valuations and fundamentals, and advises against chasing the rally. The investor assigns JOBY shares a Hold rating and warns that much of the current hype may taper off once eVTOL transportation becomes commoditized.

Joby Aviation's (JOBY) stock has surged today, climbing 6% and reaching an 82% gain in 2025, following a 783% increase over the past 12 months. The company's stock performance is driven by its strategic positioning in the flying car technology sector, with commercial flights targeted for 2026 and backing from major players like Toyota and Uber Technologies [1].

The recent stock rally can be attributed to Joby's partnership with defense contractor L3Harris (LHX) to develop a hybrid vertical take-off and landing (VTOL) aircraft for military use. The collaboration aims to leverage Joby's electric aviation technology and L3Harris's expertise in military systems to create a next-generation VTOL aircraft capable of both crewed and autonomous missions [2, 3].

The partnership brings together Joby's S4 platform, which features a hybrid propulsion system, and L3Harris's mission-specific technologies, such as sensors and communication systems. The companies expect to begin testing the aircraft this fall, with operational demonstrations scheduled for 2026. The new military vehicle is designed to fulfill various low-altitude military use cases, including intelligence gathering and cargo transport [2, 3].

Despite the positive market reaction to the partnership, one top investor, Juxtaposed Ideas, has warned that Joby's stock is no longer trading within reasonable valuations and fundamentals. The investor advises against chasing the rally and assigns a Hold rating to JOBY shares. Juxtaposed Ideas suggests that much of the current hype may taper off once electric vertical take-off and landing (eVTOL) transportation becomes commoditized [1].

Investors should remain cautious and closely monitor Joby's progress in securing FAA approval for its commercial aircraft and the development of its military-grade VTOL aircraft. The company's ability to deliver on its promises and navigate the competitive eVTOL market will be crucial for its future success.

References:
[1] https://finance.yahoo.com/video/kimberly-clark-roku-joby-aviation-160423356.html
[2] https://www.cnbc.com/2025/08/01/joby-l3harris-hybrid-defense-craft-vtol.html
[3] https://www.benzinga.com/news/contracts/25/08/46802691/joby-teams-with-l3harris-to-build-hybrid-military-aircraft-shares-surge-on-bold-defense-bet