Key Points

• Joby Aviation's business model differs significantly from that of its peers.

• There's reason to believe its vertically integrated strategy will win out.

• The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.

• 10 stocks we like better than Joby Aviation ›

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.

What makes Joby Aviation different

It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.

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In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:

• Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
• As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."

Both points are crucial to understanding the investment case.

Joby's in-house development

Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.

Image source: Getty Images.

For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.

Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.

As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.

A vertically integrated transportation company

Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.

On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.

Image source: Joby Aviation.

Can Joby Aviation be a life-changing investment?

Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.

Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.

There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. The Motley Fool has a disclosure policy.

Key Points

• At 20 times earnings, investors are likely overlooking Google parent Alphabet's vast potential.

• Autonomous driving could be a game changer for Uber stock.

• Southeast Asian tech conglomerate Sea Limited appears to be following Amazon's path to success.

• 10 stocks we like better than Alphabet ›

Starting off a portfolio with $1,000 may seem overly modest, but it can be a great place to begin. The more challenging task is finding stocks that can turn $1,000 into a significantly larger sum without incurring excessive risk.

Admittedly, investing in individual stocks is not entirely risk-free. Nonetheless, staying with established companies dramatically reduces investor risks, and the undervaluation in these three companies positions investors for gains as they realize more of their growth potential.

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Image source: Getty Images.

1. Alphabet

One of the more compelling bargains on the market today is Google's parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

Despite being an early pioneer in AI, Alphabet appeared to be caught flat-footed when OpenAI introduced its generative AI-driven version of ChatGPT. The company released Google Gemini soon after, but Google Search remains under threat from competition for the first time in decades.

Also, Alphabet still generates around 74% of its revenue from digital advertising. Since its generative AI directs users to websites less often, it has resulted in fewer opportunities to generate ad-driven income.

Google Cloud now accounts for 14% of the company's revenue. Moreover, its autonomous driving company, Waymo, could become a revenue source as self-driving cars become more prevalent. Alphabet also holds $95 billion in liquidity and generated almost $75 billion in free cash flow over the trailing 12 months, giving the company tremendous resources to compete in other business ventures.

Amid these struggles, Alphabet stock trades for just 21 times earnings. Given its optionality and non-ad revenue sources, its growth is likely not yet complete, meaning it could still experience market-beating growth for years to come.

2. Uber

Investors know Uber Technologies (NYSE: UBER) as the leader in ridesharing and one of the leading delivery companies. The company has established a globally recognized brand in these industries, as well as its freight business.

Although the mobility and delivery segments remain on a long-term growth trajectory, Uber's real future may lie in autonomous vehicles. The company has partnered with autonomous vehicle companies such as Alphabet's Waymo and the General Motors subsidiary Cruise.

Uber provides a platform to arrange rides and bring customers to these companies, allowing its partners to focus on improving autonomous driving and, to a lesser extent, air taxis, such as those being developed by companies like Joby Aviation.

Thanks to that emerging industry, Straits Research believes the autonomous vehicle will take the global ridesharing market to a 21% compound annual growth rate (CAGR) through 2033, reaching a size of $918 billion.

Uber earned $44 billion in revenue in 2024, although it generated just over half of that from ridesharing, suggesting that Uber will likely claim a significant portion of the anticipated growth over the next few years.

A one-time income tax benefit makes its 16 P/E ratio a deceptive valuation measure. Nonetheless, with a 25 forward P/E ratio, Uber could be an excellent choice for both growth and value investors seeking outsize returns.

3. Sea Limited

Sea Limited (NYSE: SE) is not a household name for American investors, as its e-commerce and fintech arms operate primarily in Southeast Asia. However, for those who missed out on Amazon, the tech conglomerate may serve as a second-chance stock.

The company's Shopee segment is the leading e-retailer in Southeast Asia, a region with a population of around 650 million. Since its failed attempts to sell in most of its non-Asian markets, it has taken a page from Amazon's playbook and invested heavily in logistics.

Additionally, fintech giant Monee adds mobile payment options to cash-focused consumers in the developed world, while gaming company Garena had the world's most downloaded mobile game in 2024, Free Fire.

While Monee has remained consistently strong, Shopee's growth has recovered amid its investments in logistics. Furthermore, after several quarters of revenue declines, Garena has recovered amid Free Fire's renewed popularity.

With all three segments in growth mode, Sea Limited's revenue rose 30% year over year in the first quarter of 2025, far above the 5% annual growth in the first quarter of 2023.

This has led to an improved valuation, and while its P/E ratio of 112 may appear pricey, the forward P/E of 40, which is based on predicted growth, arguably makes this stock a bargain. Considering that its $94 billion market cap is a small fraction of Amazon's $2.4 trillion market cap, it appears positioned for considerable growth from current levels.

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has positions in Sea Limited and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Sea Limited, and Uber Technologies. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

Key Points

• Joby Aviation announced that it will double the size of its existing California production facility.

• The company is also expanding its test fleet.

• Mounting losses and a steep valuation suggest caution is warranted.

• 10 stocks we like better than Joby Aviation ›

Shares of Joby Aviation (NYSE: JOBY) were flying high Tuesday, soaring as much as 10.3%. As of 3:12 p.m. ET, the stock was still up 9.1%.

The catalyst that sent the electric vertical takeoff and landing (eVTOL) aircraft specialist higher was an announcement that the company is expanding its manufacturing capacity.

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Image source: Joby Aviation.

Ready to take flight

In a press release on Tuesday, Joby announced plans to increase the size of its Marina, California, manufacturing facility to 435,500 square feet of total space. This will effectively double the production capacity at that location and support the scale-up of the company's commercial operations. Joby is also ramping up manufacturing capacity at its newly renovated Dayton, Ohio, plant, which will be tasked with manufacturing and testing aircraft components.

Joby is also expanding its flight test program, adding a new aircraft to its growing test fleet.

Is Joby a buy?

It's important to remember that Joby isn't yet generating much revenue, and the company's losses are piling up. As such, a lot will have to go right for Joby to succeed, and the stock is exorbitantly expensive, currently trading for 179 times next year's expected sales.

To be clear, Joby is a high-risk, high-reward investment, which could lead to something of a binary outcome. If the eVTOL specialist can win certification from the Federal Aviation Administration (FAA) -- the process in ongoing -- and manufacture its aircraft at scale, the stock could fly much higher. On the other hand, if Joby isn't successful in either of these areas, the highflier could crash and burn.

With that in mind, investors should size their positions with their risk tolerance in mind.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Danny Vena has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• Archer began Abu Dhabi test flights this week, becoming the first eVTOL manufacturer flying in the Middle East.

• Defense partnerships with Anduril and Palantir Technologies could unlock massive value through acquisition or corporate split.

• With approximately $2 billion in liquidity following White House-backed funding, Archer has the industry's strongest balance sheet.

Wall Street sees Archer Aviation (NYSE: ACHR) as just another electric flying taxi company burning cash while chasing FAA certification. Yes, the risks are real -- certification delays, massive cash burn, fierce competition, and the challenge of scaling a new form of aviation.

But that narrow view completely misses what's really happening here: Archer is quietly building the most valuable defense aviation asset outside the traditional primes -- and a major acquisition or corporate restructuring could soon expose this hidden value. Here's a deeper look at why I think these forces are building to drive a major breakout in the stock in the not-so-distant future.

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Image source: Getty Images.

The White House just changed everything

Trading around $10 with a market cap near $5.4 billion at the time of writing (July 1, 2025), Archer has delivered impressive returns, up over 245% in the past three years. But those gains pale compared to what's coming. In June 2025, following President Trump's executive order establishing an eVTOL Integration Pilot Program, Archer raised $850 million at $10 per share, bringing its total liquidity to an industry-leading $2 billion.

This wasn't just another funding round. The White House explicitly aims to establish U.S. "dominance" in eVTOL technology through its new Integration Pilot Program. The timing is perfect -- Archer serves as the Official Air Taxi Provider for the Los Angeles 2028 Olympics, creating a high-profile deadline for commercial deployment.

CEO Adam Goldstein called the executive order a "seminal moment" -- and he's right. Unlike competitors burning through capital with single-market strategies, Archer's dual approach and $2 billion war chest provide multiple paths to profitability.

While well-funded competitors like Joby Aviation (NYSE: JOBY) pursue both civilian and military markets, Archer has assembled something unique: an exclusive defense partnership combining its hybrid-electric vertical takeoff and landing (eVTOL) technology with Anduril's autonomous systems and Palantir Technologies' (NASDAQ: PLTR) artificial intelligence (AI) infrastructure. This triumvirate represents a $100 billion-plus opportunity that doesn't require FAA certification.

The defense disruption play

Yes, both Archer and Joby have defense contracts. But Archer's approach is fundamentally different. The late-2024 Anduril partnership creates a hybrid-propulsion aircraft specifically for military use -- not adapted civilian aircraft. This matters because hybrid systems offer extended range and payload capacity that pure electric vehicles can't match right now.

More importantly, Anduril brings its Lattice AI platform, already integrated into hundreds of military systems. Combined with Palantir's March 2025 partnership for AI-powered aviation software, Archer offers the Pentagon something unprecedented: a fully integrated, AI-enabled vertical lift capability from three of defense tech's hottest companies.

The partnership targets a "program of record" -- Pentagon-speak for guaranteed multiyear funding. These contracts can reach billions annually. With defense demand "stronger than expected," according to Goldstein, the company aims to build early hybrid-propulsion defense prototypes soon, distinct from its Midnight commercially oriented aircraft.

The split scenario unlocks everything

Here's where it gets interesting. Archer could unlock massive value through a corporate split, separating its commercial and defense operations. This solves multiple problems at once: Stellantis, with its substantial stake in Archer, wants to focus on commercial air mobility -- not get entangled with defense contractors. A split allows the commercial division to pursue the $1 trillion urban air mobility market with Stellantis and United Airlines, backed by the White House pilot program.

Meanwhile, the defense division -- supercharged by Anduril and Palantir -- becomes an attractive acquisition target for Northrop Grumman (NYSE: NOC) or other defense primes. Northrop has explicitly prioritized AI, autonomous systems, and next-generation aviation. The aerospace giant's Orbital ATK acquisition ($9.2 billion total in 2018) proved its ability to integrate cutting-edge aerospace assets, expanding capabilities in solid rocket motors, missile systems, and space technologies.

Multiple paths to value

Archer isn't waiting for corporate action. The company delivers its first piloted Midnight aircraft to Abu Dhabi Aviation this summer. Manufacturing has begun at its Georgia facility, targeting two aircraft per month by year-end. The Palantir partnership adds another layer, developing AI-powered air traffic systems worth billions.

With a pro forma liquidity position of $2 billion, Archer has industry-leading financial resources to execute on both opportunities simultaneously. Wall Street still prices it primarily as a pre-revenue eVTOL company, largely ignoring its defense potential. But with Anduril recently beating Boeing for major contracts and White House backing, the market's dismissive attitude is changing.

When investors recognize Archer's transformation from flying taxi company to critical defense asset, today's $10 stock will look like the bargain of the decade. After all, defense stocks tend to sport premium valuations and stellar free cash flows.

Should you invest $1,000 in Archer Aviation right now?

Before you buy stock in Archer Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 30, 2025

George Budwell has positions in Archer Aviation, Joby Aviation, Northrop Grumman, and Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.

So-called "flying taxis" are going mainstream, and investors are rushing into shares of the early market leaders.

Joby Aviation (NYSE: JOBY) stock traded up as much as 14.9% at the market open and were up 8.6% as of 10:30 a.m. ET after President Donald Trump signed an executive order aiming to "unleash" development of the company's new flying machines.

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Image source: Joby Aviation.

Markets taking shape

Joby is one of a handful of aerospace companies racing to bring electric aircraft capable of vertical takeoffs and landings, or eVTOLs, to market. It takes time for new designs to win Federal Aviation Administration (FAA) approval, but if all goes well, Joby and rival Archer Aviation could have air taxis in the air as soon as next year.

Late Friday, investors got a look at the potential market for the eVTOLs once they are approved for takeoff. President Trump signed an executive order aimed at "unleashing American drone dominance," which included a mandate that the Department of Transportation advance eVTOLs.

Within 180 days, according to the order, Transportation is to select "at least" five pilot projects that plan to begin eVTOL operations, including advanced air mobility, medical response, cargo transport, and rural access.

Is Joby stock a buy?

There is still a lot that must go right for Joby, including winning FAA certification and proving it can manufacture its aircraft at scale. And Joby already had several customers lined up, including a high-profile deal announced last week with Saudi Arabia to distribute its aircraft there.

Still, the executive order points to the potential of these aircraft to disrupt existing technologies.

Joby carries a market capitalization of more than $7 billion, a lot for a pre-revenue company. But the potential is there. For investors excited about the technology and willing to carry some risk in a diversified portfolio, Joby looks like the leader of the eVTOL pack.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 9, 2025

Lou Whiteman has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Sometimes the best investment opportunities come wrapped in government buzzwords and unrealistic timelines.

Last Friday, the White House issued an executive order called "Unleashing American Drone Dominance." Yes, that's the actual title. And while it's long on ambition and short on specifics, buried in the bureaucratic language is something that matters for growth investors: a clear signal that the administration wants to fast-track electric vertical takeoff and landing (eVTOL) aircraft.

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Image source: Getty Images.

The executive order creates an eVTOL pilot program requiring the FAA to select at least five companies for real-world operations, with aggressive timelines that suggest political pressure to move faster than typical aviation bureaucracy allows.

While the details remain vague and the timelines optimistic, the direction is clear: America wants to lead in urban air mobility. This political tailwind arrives just as the technology reaches commercial viability, creating a rare convergence of innovation, regulation, and market demand.

Now, before you roll your eyes at another government initiative, consider this: Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) don't need this executive order to succeed. Both companies are working through FAA certification (though timelines for experimental aircraft are notoriously opaque), have secured major airline partnerships, and claim to be targeting commercial launches shortly.

What both companies are getting is something potentially more valuable -- political cover to move faster through the regulatory maze. Both stocks have already had massive runs over the past 12 months (Archer up 203%, Joby up 63%), but if you think flying taxis are still science fiction, you haven't been paying attention. Here's why these two pioneers look like buys even after their recent runs.

Archer Aviation: The execution story

Archer Aviation operates with remarkable efficiency for a pre-revenue company, achieving milestones that arguably justify its $5.6 billion market cap. The company's Midnight aircraft, designed to carry four passengers plus a pilot on trips up to 100 miles, recently completed piloted flights -- a critical step that positions Archer, alongside Joby, as one of America's leading eVTOL companies.

With partnerships spanning United Airlines for domestic routes and Stellantis for manufacturing expertise, Archer has assembled the pieces for rapid commercialization once certification arrives. Its Launch Edition program, securing commitments from Abu Dhabi Aviation and Ethiopian Airlines valued at up to $30 million each, provides early revenue visibility and validates international demand.

The investment case is compelling. Archer's $6 billion order backlog now exceeds its entire $5.6 billion market cap, while its hefty 11.7% short interest (as of mid-May) sets up a potential short squeeze. Though Friday's executive order lacks implementation details, it sends an unmistakable signal -- the U.S. government views eVTOL dominance as a national priority. For a company already executing ahead of most of its peers in many ways, that political validation could be the spark that sends shares soaring in the months ahead.

Joby Aviation: The deep-pocketed pioneer

Joby Aviation brings unmatched financial firepower to the eVTOL race, with $813 million in cash plus Toyota's recent $250 million investment (part of a $500 million commitment) providing runway through commercialization. The company's Q1 2025 achievements read like a pre-launch checklist: routine pilot-on-board transition flights, Virgin Atlantic partnership for U.K. market entry, fifth production aircraft powered on, and expanded Marina manufacturing facility set for June handover.

Joby benefits from Toyota's manufacturing expertise embedded directly in operations, potentially solving the hardest challenge facing aerospace start-ups -- scaling from prototypes to volume production. The company claims to be 62% complete on its side of Stage 4 FAA certification (43% on FAA's side), though investors should view these self-reported metrics skeptically given the opaque nature of experimental aircraft approval. That's not a knock against either company, but the reality of developing a new form of aviation.

With strategic partnerships including Delta Air Lines, Virgin Atlantic, and a $131 million Department of Defense contract, Joby has diversified its path to revenue across commercial, international, and military applications. And like Archer, Joby also sports a fairly high short interest, with 7.6% of outstanding shares sold short in May. As such, this eVTOL pioneer could also benefit form a short squeeze on positive news or a marketwide melt-up.

Why these two eVTOL pioneers are a buy this week

Friday's executive order accelerated the eVTOL timeline, and the market hasn't caught on. While Archer executes lean and Joby brings Toyota's backing, both companies now face compressed regulatory timelines that could pull commercial operations forward by years.

This week's setup is compelling: Heavy short interest creates squeeze potential, operational milestones keep hitting, and a fresh political catalyst has just emerged. So, for growth investors comfortable with volatility, this could be a stellar entry point.

Should you invest $1,000 in Archer Aviation right now?

Before you buy stock in Archer Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 2, 2025

George Budwell has positions in Archer Aviation, Joby Aviation, and Toyota Motor. The Motley Fool recommends Delta Air Lines and Stellantis. The Motley Fool has a disclosure policy.

Shares of Joby Aviation (NYSE: JOBY) are flying higher on Wednesday. The company's stock spiked 30.2% as of 2:21 p.m. ET. The jump comes as the S&P 500 and the Nasdaq Composite were mostly flat.

The company, which develops electric vertical take-off and landing (eVTOL) aircraft, announced yesterday after the market closed that it has received $250 million from Toyota, the first tranche in $500 million of previously announced funding.

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Toyota releases its first payment

While the funding was not unexpected -- the total $500 million strategic investment had already been announced -- actually receiving it sparked renewed enthusiasm for the company and its relationship with the storied vehicle maker.

The funds will be used to help Joby attain certification for its eVTOL aircraft as well as to advance its manufacturing and production capabilities. Joby leadership is hoping the relationship will progress, saying that the release of the $250 million "puts the two companies a step closer toward a strategic manufacturing alliance."

Image source: Getty Images,

JoeBen Bevirt, founder and CEO of Joby, added that, "We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design. This is an important next step in our alliance with Toyota to scale the promise of electric flight."

Joby looks promising

The news comes on the heels of a damning report on its closest competitor, Archer Aviation, that alleges Archer is misleading investors regarding its development timeline and aircraft capabilities. If these allegations prove true, it would give a massive leg up to Joby in the race to commercial operations. Given Toyota's commitment to quality and reliability and its relationship with Joby, I would be surprised if the company faces similar allegations.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 19, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Joby Aviation (NYSE: JOBY) stock jumped 6.8% through 10:10 a.m. ET this morning after "beating" earnings last night. Analysts forecast Joby would lose $0.19 per share in its first quarter of 2025, but the electric air taxi company reported a loss of only $0.11 per share.

Joby has no revenue, so analysts didn't bother making a revenue forecast -- and Joby reported no revenue.

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Image source: Getty Images.

Joby Aviation Q1 earnings

Being a pre-revenue company, Joby's "earnings" press release focused on business developments instead. The company noted it has picked a new CFO, Rodrigo Brumana, a veteran of HP, Amazon, eBay "and, most recently, Poshmark."

The company said it has made "progress on the certification of our aircraft," and said it has begun "routine transition flights with a pilot onboard the aircraft, marking a critical step toward starting FAA flight testing."

Perhaps most importantly, Joby said it ended Q1 2025 with $813 million in the bank, and another $500 million investment from Toyota Motor on the way.

Is Joby stock a buy?

That's important because, with no revenue and no cashflow coming in from its business, Joby currently has to draw on its cash reserves to keep itself in business as it moves toward having a product to sell. Last year, Joby burned through $487 million in negative free cash flow, a number that's starting to inch higher in 2025.

The good news is that, with Toyota's backing, the company still has enough money to keep it afloat for nearly three more years before it runs out of cash. The bad news is that analysts forecast Joby won't turn profitable before 2030 -- five years away.

Joby stock remains speculative. If you decide to buy into it, make sure to buy small.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, HP, and eBay. The Motley Fool has a disclosure policy.