Could Joby Aviation Potentially Generate Millionaire Investments?
Could Joby Aviation Potentially Generate Millionaire Investments?
It's rare to find a lack of enticing investment opportunities. A chance to become a millionaire, however, that's a different story.
Such investments call for a revolutionary product or service, an explosive market growth driven by demand, a leadership team skilled at navigating uncharted waters that others avoid, and a touch of good fortune. Companies like electric vehicle powerhouse Tesla and online retail giant Amazon are prime examples of this. Those who saw their promising futures before they become the giants we know today have greatly benefited as investors.
Will startup Joby Aviation (JOBY 3.26%) be the next to deliver millionaire-making gains? Time will tell, but the opportunity certainly seems promising.
So, what's Joby Aviation?
Probably never heard of it? Most investors haven't. Its relatively small $5 billion market cap doesn't attract many gazes.
Don't let its size or absence from the mainstream investing world deter you, though. This company is brimming with potential, just waiting to be unleashed.
In simple terms, Joby Aviation creates air taxis. These are compact, aerial vehicles that fly like an airplane but take off and land vertically like a helicopter. Powered electrically, they're quiet enough for urban flights, transporting passengers to and from buildings or small landing sites within busy city areas, transforming the "big cities" we're all familiar with.
In fact, Joby Aviation has conducted a demo flight in New York City, a prelude to a service linking downtown with JFK Airport. The trip time? Less than 10 minutes, compared to an hour by car.
Don't mistake the message: This company is still very much a baby in the investment world. It began generating revenue this year, and even its Q3 revenue, $28,000, is minuscule next to its $156.7 million operating expenses, mostly for research and development of its aircraft and factory expansion.
Joby stock might be worth considering at this point, though, even with the substantial costs, due to expected more substantial revenue soon.
Wait for it
Joby Aviation's growth timeline is somewhat uncertain. The FAA granted Joby Aviation operating permission for an air-taxi service in 2022. It then partnered with airline Delta Air Lines to develop an airport-to-home service in select US cities. Commercial operation isn't there just yet, though.
It's coming, and it's near. Last month, Joby Aviation unveiled its prototype aircraft for air taxi use, awaiting FAA certification for this purpose. Once approved, the company can begin operations in Los Angeles and New York City, where infrastructure is nearly ready.
Meanwhile, Joby Aviation has applied to become the United Arab Emirates' first electric air taxi service, and only this month it started working on its first Dubai vertiport.
Clearly, Joby Aviation expects demand to materialize once all necessary permissions are in place.
Granted, they're not the only believers. In addition to its Delta partnership, in October automobile company Toyota announced a $500 million investment in Joby. A month later, Toyota revealed its interest in air taxis went beyond just an equity investment, planning an air-taxi collaboration for Japan's crowded cities.
Separately but simultaneously, market research firm Mordor Intelligence predicts the global air taxi market will grow at an annual pace of 23% up to 2029, in line with the expectations from Imarc Group and Precedence Research. That's a significant consensus pointing to this market growing 10 times bigger within the next decade.
Risky but worth considering
Joby stock isn't the right fit for every investor. Its high-risk profile is matched by its high potential rewards.
What kind of risks? For starters, while these aircraft are proven, the business isn't. Maybe commuters just aren't interested, even if air-taxi journeys are priced competitively compared to ride-sharing services like Uber or Lyft. Remember how meal kit services like those offered by Blue Apron and Hello Fresh were popularly believed to be widely marketable? Well, we now know that's not quite true.
The point is, not every business idea lives up to the hype.
There's also competition, with companies like Archer Aviation and Vertical Aerospace building similar vertical take-off and landing aircraft. To add to this, Joby Aviation continues issuing stock to raise much-needed capital, diluting existing shareholders.
For investors willing to tolerate the risk, though, there might just be space for more than one player in this promising, budding business with the potential to grow 10 times. That means Joby Aviation just might be a millionaire-maker stock. At the very least, it's worthy of watching, with a view to adding it to your portfolio as soon as it starts commercial operations at major airports in the near future.
The investment in Joby Aviation might require significant finance due to its ongoing research and development expenses. Despite these costs, the opportunity to profit from its potential growth is worth considering, given the expected increase in revenue and the high demand predicted by market research firms. With major partners like Delta Air Lines and Toyota investing in the company, the financial potential of Joby Aviation as a millionaire-making investment opportunity cannot be ignored.