Latest news with #JobyAviation
Yahoo
a day ago
- Automotive
- Yahoo
At Paris Air Show, eVTOL Industry Preps for Takeoff
It's a bird … it's a plane … it's an … electric vertical takeoff and landing vehicle, or eVTOL (neither of which exactly rolls off the tongue, if you ask us). As Airbus lands major sales and Boeing tries to regain its credibility at this year's Paris Air Show, the upstart not-quite-a-plane, not-quite-a-helicopter, not-quite-cleared-for-liftoff eVTOL industry is climbing closer and closer to achieving its sky-high ambitions. For key US players Joby Aviation and Archer Aviation, the show comes at a critical moment. READ ALSO: US Flexes Golden Share in Nippon Merger With US Steel and AmEx Platinum, Chase Sapphire Reserve Battle for Points in Upgrade Grudge Match Both Archer and Joby went public in 2020 during the SPAC craze. Like a lot of SPAC companies, their appeal to investors was largely speculative — and, five years later, remains somewhat speculative (neither has completed a commercial flight yet). But promises of a Jetsons-esque future of battery-powered flying taxis are starting to look a little more real, especially after a slew of developments in just the past couple of weeks. At the end of May, Joby announced it received $250 million from Toyota, the second tranche of a $500 million investment from the major automaker announced in October (which itself followed a previous $394 million investment from Toyota). Then, last week, came the big news: As part of a broader initiative to promote domestic drone production, the White House issued an executive order to launch a pilot program for the nascent industry. The announcement brought renewed interest to the pair of eVTOL firms, which showed both companies may have climbed a little too close to the sun: Shares of Joby had spiked more than 30% in the days immediately following the announcement of the Toyota cash infusion. That led analysts at Cantor Fitzgerald to quell some of the excitement, downgrading the stock from overweight to neutral while highlighting the company's high cash-burn rate and lack of near-term upside. Archer, meanwhile, seized the opportunity presented by the White House's encouraging executive orders to sell $850 million of stock on Friday, which dragged its share price down 15%. It did recover nearly 4% on Monday, however. Cleared for Takeoff: But what about the question that may matter the most: When will these birds finally fly? It's tough to say. Both companies have scored deals to launch air taxi services in the United Arab Emirates, with Archer saying industry standards in the country should be finalized by next month and Joby saying service could start as soon as early next year. Both companies have also struck deals with major US airlines — Archer with United and Joby with Delta — to eventually ferry passengers to and from major US airports. Archer has also struck a deal to become the official air taxi partner of the 2028 Los Angeles Summer Olympics, which shows the lengths to which Angelenos will go to avoid their infamous traffic jams. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Cantor Downgrades Joby Aviation Stock (JOBY) Due to Lack of Near-Term Upside
Cantor Fitzgerald downgraded electric vertical takeoff and landing (eVTOL) aircraft maker Joby Aviation (JOBY) to Hold from Buy with a price target of $9 due to a lack of near-term upside in the stock. While JOBY stock plunged about 8% on Thursday due to the rating downgrade, it has rallied 26.5% over the past month. As a result, the stock is up 9.1% year-to-date, thanks to a favorable executive order signed by U.S. President Donald Trump and the announcement of new deals. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Indeed, the executive order would direct the Transportation Department to develop a program to accelerate eVTOL operations in the U.S., which is expected to benefit players like Joby Aviation and Archer Aviation (ACHR). This comes after Joby Aviation signed a Memorandum of Understanding (MoU) earlier this month with Abdul Latif Jameel to explore establishing a distribution agreement in Saudi Arabia for the company's electric aircraft. The agreement involves the potential delivery of up to 200 Joby aircraft and related services that are valued at about $1 billion. Cantor Moves to the Sidelines on JOBY Stock Interestingly, Cantor analyst Andres Sheppard admitted that Joby Aviation remains one of the best-positioned companies in the eVTOL sector, given its partnerships with Toyota (TM), Delta Air Lines (DAL), and the U.S. Department of Defense. However, the 4-star analyst finds JOBY stocks' valuation to be stretched, following a 60% rally over the past three months and an almost 90% gain in the past year. 'We don't see current levels as a good entry point for investors,' said Sheppard. The analyst noted that while Joby Aviation has solid liquidity, it also has one of the highest cash burn rates in the sector. In fact, the company ended Q1 2025 with about $1.3 billion in total liquidity, including Toyota's $250 million funding, but expects to spend between $500 million and $540 million in 2025. Additionally, Sheppard cautioned about delays in U.S. certification and doesn't expect Joby Aviation to secure full FAA Type Certification until at least the second half of 2026. Finally, Sheppard pointed out persistent uncertainty around the company's unit economics, such as pricing and deployment costs of its air taxi service. Is Joby Stock a Good Buy? Wall Street has a Moderate Buy consensus rating on Joby Aviation stock based on three Buys, three Holds, and one Sell recommendation. Furthermore, the average JOBY stock price target of $8.86 indicates that the stock is trading close to fair value. See more JOBY analyst ratings Disclaimer & Disclosure Report an Issue
Bloomberg
4 days ago
- Automotive
- Bloomberg
Trump's Executive Order to Make Flying Cars a Reality
On the heels of President Trump's recent executive order, we explore the fast-emerging world of flying cars, or eVTOLs, as companies like Joby Aviation and Pivotal race to bring personal air travel to life. Joby is working toward FAA certification for air-taxi services in cities, with plans to launch in 2026, while Pivotal is focused on lightweight, personal aircraft for consumers, public safety, and defense. Despite regulatory and technological hurdles—especially around batteries and infrastructure — the hope is to make flying as accessible as and more efficient than driving. (Source: Bloomberg)
Business Insider
5 days ago
- Business
- Business Insider
Cantor Downgrades Joby Aviation Stock (JOBY) Due to Lack of Near-Term Upside
Cantor Fitzgerald downgraded electric vertical takeoff and landing (eVTOL) aircraft maker Joby Aviation (JOBY) to Hold from Buy with a price target of $9 due to a lack of near-term upside in the stock. While JOBY stock plunged about 8% on Thursday due to the rating downgrade, it has rallied 26.5% over the past month. As a result, the stock is up 9.1% year-to-date, thanks to a favorable executive order signed by U.S. President Donald Trump and the announcement of new deals. Confident Investing Starts Here: Indeed, the executive order would direct the Transportation Department to develop a program to accelerate eVTOL operations in the U.S., which is expected to benefit players like Joby Aviation and Archer Aviation (ACHR). This comes after Joby Aviation signed a Memorandum of Understanding (MoU) earlier this month with Abdul Latif Jameel to explore establishing a distribution agreement in Saudi Arabia for the company's electric aircraft. The agreement involves the potential delivery of up to 200 Joby aircraft and related services that are valued at about $1 billion. Cantor Moves to the Sidelines on JOBY Stock Interestingly, Cantor analyst Andres Sheppard admitted that Joby Aviation remains one of the best-positioned companies in the eVTOL sector, given its partnerships with Toyota (TM), Delta Air Lines (DAL), and the U.S. Department of Defense. However, the 4-star analyst finds JOBY stocks' valuation to be stretched, following a 60% rally over the past three months and an almost 90% gain in the past year. 'We don't see current levels as a good entry point for investors,' said Sheppard. The analyst noted that while Joby Aviation has solid liquidity, it also has one of the highest cash burn rates in the sector. In fact, the company ended Q1 2025 with about $1.3 billion in total liquidity, including Toyota's $250 million funding, but expects to spend between $500 million and $540 million in 2025. Additionally, Sheppard cautioned about delays in U.S. certification and doesn't expect Joby Aviation to secure full FAA Type Certification until at least the second half of 2026. Finally, Sheppard pointed out persistent uncertainty around the company's unit economics, such as pricing and deployment costs of its air taxi service. Is Joby Stock a Good Buy? Wall Street has a Moderate Buy consensus rating on Joby Aviation stock based on three Buys, three Holds, and one Sell recommendation. Furthermore, the average JOBY stock price target of $8.86 indicates that the stock is trading close to fair value.
CNBC
6 days ago
- Automotive
- CNBC
Archer drops as much as 15% on $850 million share sale following Trump air taxi pilot program
Archer Aviation's stock dropped as much as 15% on Friday after the air taxi maker said it sold $850 million worth of shares. The electric vertical takeoff and landing vehicle, or eVTOL, company said Thursday it plans to use the financing to support new infrastructure and the rollout of an artificial intelligence-based aviation software platform. The money will also support its Launch Edition program, including an official partnership to provide air taxi services during the 2028 Olympics in Los Angeles. Archer said the funding round included the sale of 85 million shares at $10 apiece and gives the company a pro forma liquidity position of roughly $2 billion. "We now have the strongest balance sheet in the sector and the resources we need to execute both here in the U.S. and abroad," said founder and CEO Adam Goldstein in a release. "Archer's future couldn't be any brighter." The stock offering comes after President Donald Trump recently signed an executive order that created a pilot program to support developing and deploying more eVTOL vehicles in the U.S. Shares of both Archer and competitor Joby Aviation rallied this week on the heels of the news. Demand for eVTOL companies has ballooned in recent years as developers tout the technology's ability to reduce emissions and cut down traffic congestion. The technology faces numerous regulatory and safety hurdles in the process. Archer has already partnered with United Airlines to roll out an airport air taxi service. Last month, competitor Joby Aviation said it received the first $250 million from a $500 million contract with carmaker Toyota to support certifying and producing eVTOLs. Archer is slated to display its Midnight eVTOL aircraft at the Paris Air Show this month. The United Arab Emirates will be the company's first launch market.
