Is Joby Aviation Stock a Buy Now?

Core Viewpoint - Joby Aviation has struggled to impress investors since its public debut, with its stock price declining significantly due to missed targets and financial losses [1][2] Company Overview - Joby Aviation specializes in electric vertical takeoff and landing (eVTOL) aircraft and went public via a SPAC merger on August 10, 2021, with an initial stock price of $10.62 [1][2] - The company's first aircraft, the S4, can carry a pilot and four passengers, travel 100 miles on a single charge, and reach speeds of 200 mph [3] Market Position - Joby is an early mover in the nascent eVTOL market, competing with companies like Archer Aviation, which also aims to provide more efficient alternatives to traditional helicopters [2] - Joby has secured significant contracts, including a$131 million deal with the U.S. Department of Defense to deliver eVTOL aircraft for air taxi services [4] Business Expansion - Joby has delivered two S4 aircraft to Edwards Air Force Base and plans to deliver more to MacDill Air Force Base [5] - The company operates a test fleet of five aircraft and aims to begin Type Inspection Authorization flight tests within the next 12 months [6] - Joby is also expanding internationally, with plans to deliver aircraft to Dubai by mid-2025 and start passenger services by late 2025 or early 2026 [7] Financial Backing - In 2024, Joby attracted over $1 billion in funding, including a$500 million commitment from Toyota, ending the year with $933 million in cash [8] Valuation Concerns - Joby has a high enterprise value of$4.7 billion, trading at 522 times this year's sales, which raises concerns about its valuation compared to competitors like Archer Aviation [9] - Insiders at Joby sold more shares than they bought over the past year, contrasting with Archer's insiders who bought significantly more shares [10] Profitability Outlook - Both Joby and Archer are expected to remain unprofitable for several years, with Joby's share count increasing by 30% over the past three years [11] - Given the high valuation and financial challenges, investing in Joby may not be advisable compared to other options in the eVTOL market [12]