Flying cars are quickly moving from science fiction to real life. That includes Joby Aviation (JOBY), which could fly to higher highs this year. For starters, it’s working with Uber (UBER) and expects to fly their first passengers later this year in Dubai. Secondly, Joby is also working with the Federal Aviation Administration (FAA), which will eventually lead to commercial service in the U.S.
We should also mention that Joby’s $125 million acquisition of Blade Air Mobility’s passenger business will help speed up Joby’s path to commercialization. It also gives Joby valuable infrastructure, including landing terminals and operational expertise in major cities worldwide. Plus, it doesn’t hurt that the White House selected Joby Aviation for its eVTOL pilot program, which serves as major validation of the company’s position as a frontrunner in advanced air mobility.
Morgan Stanley says risks around certification and adoption remain. But the firm believes Joby has a major edge thanks to its partnership with Uber. Once integrated, users will be able to book Joby flights directly through the Uber app. All of which would give the company instant access to a massive customer base. In addition, Joby’s $125 million acquisition of Blade Mobility’s passenger business accelerates commercialization with access to Blade’s 12+ terminals in key markets, such as New York, Los Angeles, and Europe. It also provides Joby with access to a large customer base. Meanwhile, Joby continues to make progress on certification with the U.S. FAA, which could fuel massive upside once it crosses this hurdle.
Morgan Stanley also says we could be looking at a potential $1.5 trillion flying car market opportunity here by 2040 and up to $9 trillion by 2050. Plus, according to McKinsey, “People are ready for flying taxis. Across geographies, more than 15 to 20 percent of survey respondents say they can definitely imagine switching from their current mode of mobility to a flying-taxi service in the future.” Granted, some analysts argue that JOBY is still in the early innings of growth, but sometimes it pays to get in on the ground floor.
With Pentagon contracts to develop hybrid-electric eVTOL aircraft for military logistics, corporate partnerships (Uber, for example), and its acquisition of Blade Air Mobility, the company posted better-than-expected earnings and boosted guidance.
