JPMorgan Says You Should Sell This 1 Flying Car Stock Short Now

Company Overview - Joby Aviation (JOBY) specializes in electric air taxis, specifically eVTOLs designed for urban transportation, capable of carrying four passengers and a pilot for distances up to 150 miles at speeds of 200 mph, with zero emissions [1] - Founded in 2009 and headquartered in Santa Cruz, California, Joby operates primarily in the U.S. but has partnerships in Dubai, Australia, Japan, and the UK [2] Stock Performance - Joby Aviation's stock has decreased approximately 4% recently and is currently 36% below its 52-week high of $20.95 reached in April 2025, while being up 172% from its 52-week low of around $5 in early July last year [3] - Over the past five days, the stock has declined nearly 13% and 25% over the last six months, but it has increased by 54% in the past 52 weeks [3] - The company's market capitalization stands at $12.9 billion, trading below its 50-day moving average of $14.57, indicating bearish market sentiment [4] Financial Results - In Q3, Joby reported revenue of $23 million, derived from urban air mobility (Blade) at $14 million and defense/engineering contracts at $9 million, with an EPS of -$0.48, missing expectations by 152% due to significant R&D investments and non-cash warrant revaluations [5] - The net loss for the quarter was $401 million, an increase from $144 million year-over-year, with an operating loss of $182 million [6] - R&D expenses rose by 18% to $149 million, while SG&A expenses increased by 47% to $45 million, attributed to team growth and Blade integration [6] - Adjusted EBITDA loss was reported at $133 million, with a cash reserve of $978 million, supported by a $576 million equity raise in October [6] Future Outlook - Joby did not provide specific guidance for Q4 but emphasized progress in flight testing with over 600 flights year-to-date, Blade carrying 40,000 passengers, and demonstrations of autonomous technology [7] - Funds are allocated to support FAA certification, ramping up manufacturing, and targeting a commercial launch in 2026 [7]