Should You Buy Joby Aviation Stock While It's Below $10?

Company Overview - Joby Aviation is a developer of electric vertical takeoff and landing (eVTOL) aircraft, which are seen as cheaper, greener, faster, and quieter alternatives to traditional helicopters [3] - The company's first commercial eVTOL aircraft, the S4, carries one pilot and four passengers, has a maximum speed of 200 mph, and can travel up to 100 miles on a single charge [4] - Joby is developing a hydrogen-powered version of its aircraft that could achieve five times the range of its current model [4] Financial Performance - Joby went public via a SPAC merger on August 10, 2021, with its stock opening at $10.62, but currently trades at about $8 [1] - The company generated only $81,000 in revenue in the first nine months of 2024, significantly missing its pre-merger projection of $131 million for 2024 [7] - Analysts expect Joby's revenue to reach $131,000 for the full year 2024, $23 million in 2025, and $97 million in 2026, far below its initial $2.05 billion projection for 2026 [7] Partnerships and Contracts - Joby holds a $131 million Agility Prime contract with the U.S. Department of Defense to deliver up to nine eVTOL aircraft to the U.S. Air Force [5] - The company delivered its first eVTOL aircraft to Edwards AFB in September 2023 and plans to deliver two more to MacDill AFB in 2025 [5] - Toyota invested in Joby in 2020, and Delta Air Lines invested $60 million in 2022 to develop "home to airport" eVTOL flights [6] Market Position and Competition - Joby faces stiff competition from other eVTOL makers, including Archer Aviation, which is expected to grow its revenue from $593,000 in 2024 to $185 million in 2026 [9] - The company also competes with aerospace giants like Boeing and automakers like Hyundai in the eVTOL market [9] - Joby's enterprise value of $5.8 billion is significantly higher than Archer's $3.5 billion, with Joby trading at 60 times its 2026 sales compared to Archer's 19 times [13] Recent Developments - Joby is expanding its global operations, including in South Korea, constructing an air taxi hub in Dubai, and completing its first air taxi flight in Japan with Toyota [10] - The company recently completed major aerostructure tests to gain FAA certification, which could help launch planned domestic air taxi routes with Delta Air Lines [11] - Despite these developments, Joby's insiders sold nearly twice as many shares as they bought over the past 12 months, and its CFO recently stepped down [12] Analyst Sentiment - Of the nine analysts covering Joby, five rate it as a buy, three as a hold, and only one as a sell [2] - The average price target for Joby is $7.47, with the highest target set at $10 [2]