Joby Aviation’s eVTOL Aircraft Faces Challenges as Investors Await Growth

MENLO PARK, Calif. — Investors are watching closely as Joby Aviation, a developer of electric vertical takeoff and landing (eVTOL) aircraft, navigates significant challenges nearly four years after its public debut. The company’s stock slightly declined, closing at about $11, down from its opening price of $10.62.

Despite its promising technology, including the S4 aircraft capable of carrying a pilot and four passengers, Joby has struggled to generate substantial revenue. Starting as a highly valued company, it now faces financial losses and regulatory hurdles that have dampened investor enthusiasm.

Joby’s S4 aircraft can travel up to 100 miles at speeds of 200 mph. The company is also developing a hydrogen-powered version, which offers faster charging and longer range. Backed by major investors and partners like Toyota and Delta Air Lines, Joby aims to launch air taxi services in New York and Los Angeles, contingent on Federal Aviation Administration (FAA) approval.

The FAA is not expected to approve Joby’s commercial passenger flights until late 2025 or early 2026. Meanwhile, Joby holds a $131 million contract with the U.S. Department of Defense (DOD) to supply eVTOL aircraft to the Air Force, having delivered two to Edwards Air Force Base and planning additional deliveries this year.

Previously, Joby projected revenue growth to $131 million in 2024, expectantly rising to $721 million in 2025 and $2.05 billion by 2026. However, it only reported $136,000 from its USAF contract in 2024, with a staggering net loss of $608 million. For 2025, analysts estimate mere $2 million in revenue, as the company seeks to stabilize its operations.

If it secures full FAA approval and expands its services internationally, analysts predict Joby could see revenue jump to $60 million in 2026 and $213 million in 2027. Nevertheless, the company is expected to remain unprofitable, facing ongoing stock dilution risks due to multiple secondary offerings.

Despite challenges, Joby secured over $1 billion in funding, ending the latest quarter with $813 million in cash. With a market cap of $9.59 billion and trading at 45 times its projected 2027 revenue, its valuation raises concerns among analysts about its long-term growth potential.

Joby Aviation continues to attract speculation, but analysts caution against viewing it as a guaranteed path to wealth for investors. Its future trajectory will depend heavily on overcoming regulatory hurdles and executing on its growth strategy.