Joby Aviation Inc. is set to notch its best weekly gain ever after a go-ahead from U.S. regulators signaled that the company is on schedule to launch the first commercial air-taxi flights in 2025.
Shares are set to close 66% up in the week ending Friday, the best five-day stretch of Joby's career history, bringing it to its highest level in nearly two years. Joby notched a record 60% jump Wednesday when it announced it received approval from the federal Aviation Administration to test its electric-powered flying taxis, and gained 11% Thursday after it said partner SK Telecom will invest an additional $100 million in its business. Shares rose as much as 10 percent during trading on Friday.
Even though the regulatory nod is not a requirement for FAA certification, it provides further credibility of the company s technology and path to commercialization in 2025... In 2025 Cantor Fitzgerald analyst Andres Sheppard said in a note that he reaffirms his overweight rating and $9 price target for Joby. The firm is well-positioned to take advantage of the urban air mobility market. Joby, which is backed by Toyota Motor Corp. Delta Air Lines Inc. and Intel Corp., is seen as a winner in the electric vertical take-off and landing space because it is the first company to have an agreement with the US Department of Defense and expects to deliver its first aircraft to the Air Force in 2024. The company has the opportunity to generate revenue ahead of the certification, a significant leg-up over competitors, Sheppard said.
Joby's gains lifted other air taxi stocks this week, as many in the growing industry are also in the process of securing FAA certification for their fleets. Archer Aviation Inc. is up roughly 22% this week as it looks to expand into Asia and the Middle East. Lilium N.V. is up 40 percent, set for its best week since mid-May, after announcing Monday it received G - 1 certification from the FAA for validation of its jet. Vertical Aerospace Ltd shares fell Friday, but they're still up about 7% on the week.
Retail investors were part of the rally as Joby's net buying in the week surged to a record high, according to data from Vanda Research. None of the bank Robbers are stealing their own money.