Back. Joby Aviation more than doubling this year but shares falling this morning after reporting a wider thanex expected loss. For more on the quarter, let's get to our Phil Leau alongside the CEO of Joby.Morning Phil. Good morning Carl and Joe Ben. Thank you for joining us from Job's facilities out in California today.Uh I want to start with the the main question I think all investors in Joby have right now. Will you get to certification final certification from the FAA this year or is it more realistic fo ...

Market Overview & Potential - Morgan Stanley estimates the EVTOL (electric, vertical takeoff and landing vehicles) industry could be a $9 trillion market by 2050 [2] - The flying car market is a significant new market that hasn't really existed before and is expected to change dramatically over the next 5-20 years [2] - There are approximately 50 companies developing flying car technologies [2] Joby Aviation - Joby focuses on air taxi services and has a market capitalization of nearly 670 million (6.7%) of a billion dollars, which is almost 15% of the market cap of General Motors [3] - Joby expects to see their first passenger operations in early 2026 in Dubai [10] - S&P Global expects Joby to go from 6 to 56 units by 2030, generating $35 million (3.5%) of a billion dollars in revenue, contingent on FAA certification [6] Pivotal - Pivotal focuses on personal aviation, public safety, and defense applications [20] - Pivotal aims to deliver personal aerial vehicles to individual private owners [12] - Pivotal hopes to be in pilot operations in at least two locations in the United States within the next six months, focusing on public service such as emergency medical response [15] - Pivotal claims its aircraft is three or four orders of magnitude safer than driving a car on the freeway on a per mile basis [16] Regulatory & Technological Challenges - FAA certification is a critical milestone for the industry [5][6] - Battery technology limitations, particularly energy and power density, have historically hindered the development of flying cars [23][24] - Regulatory pathways are very difficult, requiring the creation of regulations in real time as technologies are developed [22]

Financial Data and Key Metrics Changes - For the period ending December 31, 2024, the company reported cash and short-term investments totaling $933 million, which includes net proceeds from an equity offering of $222 million and $128 million from a market offering [22] - The net loss for Q4 2024 was $246 million, reflecting a loss from operations of about $150 million and other losses of $97 million, which is an increase of approximately $102 million compared to Q3 2024 [24] - Adjusted EBITDA for Q4 2024 was a loss of $119 million, approximately $23 million higher than the same period last year [24] - The change in cash, cash equivalents, and short-term investments during 2024, excluding public offerings, was $450 million, at the lower end of guidance [25] Business Line Data and Key Metrics Changes - The company delivered its second aircraft to Edwards Air Force Base and has five aircraft in its test fleet, with significant progress in testing and certification [6][12] - Joby is the only air taxi company that has delivered multiple eVTOL aircraft from a production line, with four aircraft delivered from the Marina facility to date [10] Market Data and Key Metrics Changes - The company is making important inroads in key U.S. markets such as New York and Los Angeles, and is also expanding its presence in Dubai with the groundbreaking of the first Vertiport [18][41] - Joby has partnered with Delta and Uber to showcase its product, indicating strong market interest and collaboration [18] Company Strategy and Development Direction - The company is transitioning from leadership in aircraft development to leadership in service delivery, with plans to begin carrying passengers in Dubai later this year or early next year [9] - Joby is focused on scaling manufacturing and has plans to expand its manufacturing facility in Marina, California, to support increased production capacity [26] Management's Comments on Operating Environment and Future Outlook - Management views the coming year as an inflection point for Joby and the industry, with expectations to begin TIA flight testing in the U.S. within the next 12 months [8][13] - The company is optimistic about the opportunities presented by hybrid eVTOL aircraft and has demonstrated capabilities with a hydrogen-electric eVTOL aircraft [17] Other Important Information - The company has secured over $1 billion in additional funding commitments, including a recent $500 million investment from Toyota [8] - Joby is working towards a strategic manufacturing alliance with Toyota, which is expected to enhance production capabilities [19] Q&A Session Summary Question: Opportunities with the military - Management elaborated on the significant expansion of opportunities with the DoD, emphasizing their long-standing relationship and the potential for future technology applications [33][34] Question: Commercialization in Dubai - Management expressed excitement about the Dubai market, highlighting plans for aircraft delivery and the development of a comprehensive ecosystem for eVTOL services [39][42] Question: FAA certification progress - Management confirmed record progress in FAA certification documentation and engagement, indicating no slowdowns despite external concerns [46][48] Question: Production guidance for 2025 - Management discussed the focus on producing FAA conforming aircraft and the mix of production types planned for 2025, emphasizing the importance of conformity in manufacturing [57][60] Question: Toyota investment milestones - Management confirmed that there are regulatory and business commitments needed to unlock the first and second tranches of Toyota's investment, with a high probability of both tranches being realized in 2025 [66][71] Question: Defense applications and market opportunities - Management discussed the potential for modernization within the DoD and the opportunities presented by hybrid aircraft for longer-range missions [75][78] Question: Timeline for passenger operations - Management indicated that the timeline for passenger operations has improved, with expectations to begin market testing in Dubai soon [89][91] Question: Rotor wash effects on Vertiport infrastructure - Management highlighted the design advantages of their aircraft, which result in lower rotor wash and tip speeds, validated through testing [115][118]