Joby Aviation's Vertical Integration Strategy and FAA Certification Lead to Stock Surge

Joby Aviation shares soared 57.9% in July after the company expanded its manufacturing site in California, doubling its aircraft production capacity. This move is seen as a sign of growing confidence in its ongoing certification process with the FAA and is particularly important due to its vertically integrated business model. Joby has the backing of key companies such as Toyota and Uber, which will enhance its prospects of offering air taxi services while running its fleet.

Joby Aviation, Inc. (NYSE: JOBY) reported a significant 57.9% increase in share price in July 2025, following the company's announcement of a substantial expansion of its manufacturing site in California. This expansion doubled the company's aircraft production capacity, a move that signals growing confidence in its ongoing certification process with the Federal Aviation Administration (FAA) [1].

The expansion of Joby's manufacturing capabilities is a critical step in its vertically integrated business model, which has allowed the company to maintain control over design, manufacturing, and testing processes. The California facility, now spanning 435,000 square feet, is expected to produce 24 aircraft per year, while the company's facility in Dayton, Ohio, aims to reach a production capacity of 500 aircraft annually in the long term [2].

The manufacturing expansion comes at a time when Joby is making significant progress in its FAA certification process. As of June 2025, Joby had completed 70% of Stage 4 of the certification process, with the FAA's side at over 50% [2]. This outperformance reflects a strategic alignment with the FAA's evolving standards and a disciplined approach to testing. The company has begun final assembly of its first conforming aircraft for Type Inspection Authorization (TIA) flight testing, which is expected to commence in 2025. This aircraft will be flown by Joby pilots, followed by FAA pilots for safety and performance evaluation, marking the final stage of certification [1].

Joby's progress in both manufacturing and certification is a result of its strategic partnerships and investments. The company's collaboration with Toyota and its recent manufacturing expansion in California and Ohio have significantly bolstered its production capacity and financial reserves. Toyota's $250M investment tranche has also provided a substantial runway for certification completion [2].

Despite a loss of $0.41 EPS in Q2 2025, Joby's strong cash reserves and Toyota's backing position the company favorably for the completion of its FAA certification and the potential launch of its air taxi service in Dubai by early 2026 [2].

References:
[1] https://ir.jobyaviation.com/news-events/press-releases/detail/138/jobys-first-conforming-aircraft-heads-to-final-assembly-in
[2] https://www.ainvest.com/news/joby-aviation-q2-2025-outperformance-accelerated-certification-pathway-signal-inflection-point-urban-air-mobility-2508/