Joby Aviation (NYSE: JOBY) has reached a critical milestone with its first aircraft, the N547JX, successfully taking to the skies, marking a significant step toward launching its U.S. air taxi service. This aircraft is pivotal as it enters the FAA’s rigorous Type Inspection Authorization (TIA) testing phase, which is essential for commercial approval. Joby completed the Design Assessment phase earlier this year and is now gearing up for the next crucial tests that will evaluate the aircraft’s systems and overall performance.
Despite this progress, Joby’s stock has declined by 17% since the announcement, reflecting investor caution regarding the lengthy FAA approval process. Historical precedents, such as the Boeing 777-9’s prolonged testing delays, highlight the potential for setbacks that could severely impact Joby’s timeline and stock performance. The market remains wary, as any design flaws could lead to significant delays, making JOBY a speculative investment.
For investors willing to embrace the risk, Joby’s shares are currently trading below their initial 2021 price and are 58% off their 2025 highs, presenting a potential buying opportunity for those with a bullish outlook on the eVTOL sector.
Source: fool.com