Where Will Joby Aviation Stock Be in 10 Years?

Core Insights - Joby Aviation aims to revolutionize the transportation sector with electric vertical takeoff and landing vehicles (eVTOLs) for an air taxi network, addressing traffic congestion issues [2][4] - The company has established partnerships with major players like Uber, Toyota, and Delta, which provide financial support and demand generation [9][10] - Joby Aviation currently faces significant challenges, including high cash burn and the need for FAA certification, which could delay commercialization [7][8] Company Overview - Joby Aviation is developing eVTOLs to create a taxi network that could transform urban transportation by reducing travel time significantly, such as a 7-minute ride from downtown Manhattan to JFK Airport [5] - The company is targeting affluent customers who may be willing to pay a premium for the convenience of air travel, potentially allowing for high revenue generation in the initial years [6] Financial Position - Joby Aviation has a market capitalization of $6 billion, with projections suggesting it could reach around$10 billion in the next decade, assuming continued capital infusions and shareholder dilution [11] - The company is currently generating zero revenue and has a negative free cash flow of $432 million, indicating a substantial cash burn rate [8][12] Market Valuation - Even with potential future revenue from 1 million annual flights at$250 each, the projected revenue of $250 million would result in a high price-to-sales ratio of 40, suggesting the stock may be overvalued [12] - The stock is considered to be at risk of stagnation or decline over the next decade, making it a less attractive investment opportunity at present [13]