Joby Aviation Inc. posted its best weekly gain ever after a go-ahead from US regulators signaled the company is on schedule to launch the first commercial air-taxi flights in 2025.
Shares gained 62% in the week ending Friday, the best consecutive five-day stretch ever for Joby, bringing it to its highest level in nearly two years. Joby notched a record 40% 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 2.8% Friday.
Even though the regulatory nod this week is not a requirement for FAA certification, it “provides further credibility of the company’s technology and path to commercialization,” in 2025, Cantor Fitzgerald analyst Andres Sheppard wrote in a note reaffirming his overweight rating and $9 price target for Joby. “The company is well-positioned to capitalize on the Urban Air Mobility markets.”
Joby, which is backed by Uber Technologies Inc., 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’s 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. This provides the company with an opportunity to generate revenue ahead of FAA certification, a significant leg-up over competitors, according to Sheppard.
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 22% this week as it looks to expand in the Middle East and Asia. Lilium N.V. gained 40%, its best week since May, after announcing Monday it received G-1 certification from the FAA for validation of its jet. Vertical Aerospace Ltd shares slipped Friday, but are still up 8.2% for the week.
Retail investors played a part in the rally as net buying in Joby surged this week to a record high, according to data from Vanda Research. The gains also pushed Joby, which went public via a special purpose acquisition company merger, above the $10 SPAC mark in a sign of life after rough markets weighed on shares of such companies.
(Updates stock moves at market close.)