At just $6, this growing part could turn into a huge investment!

Today, we will tell you about the stock market. At just $6, this growing part could turn into a huge investment! Let’s start:

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At just $6, this growing part could turn into a huge investment!

One interesting share I’ve found on the market is Joby Aviation (NYSE JOBY). It’s currently trading at $6.60 after rising 24% last year, but it has dropped 35% since hitting $10 in January.

Here are the reasons why I believe it’s likely to yield huge returns over the next few years.

EVTOLs

Joby Aviation is leading the race to market the electric vertical takeoff and landing (eVTOL) planes. Often referred to as electric taxis that fly, they can take off vertically, similar to helicopters, meaning that there’s no need for runways with long lengths. In contrast to helicopters, they can be quiet and fly like drones.

Joby’s aeroplane is currently operating with a 100-mile battery range. It can carry four passengers as well as an instructor, with speeds between 200 and 300 mph. The aircraft is an emission-free option for transport in the region.

For instance, an eVTOL can travel between JFK Airport to Manhattan in around 7 minutes, in contrast to 60-90 minutes in an automobile, which can save passengers from a travel duration of up to 80 minutes. The company is currently building the first vertiports to airport routes to focus on this low-hanging berry.

In the last year, the company has signed a deal for six years for the launch of air taxis in Dubai from 2026. The flight time between Dubai International Airport to Palm Jumeirah can take as little as 10 minutes compared to 45 minutes in a car. The partners of the company have broken ground on the first vertiport to be built in the Dubai network.

At first, Joby will offer Uber Black prices on a per-seat mile basis. In the future, it will bring prices down to the same level as UberX which is the cheapest service. With the money in Dubai, I don’t think the demand will cause any issues!

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Blue-chip backing

In the context of Uber, Joby bought the ride-hailing company’s eVTOL venture in 2021. In the course of the acquisition, Uber took a stake and was able to integrate their services, which means that Joby’s air taxis are available via Uber’s app.

The other partner of the partnership is Delta Airlines,whicho plans to integrate the service into its app to transport passengers between cities.

Then there’s Toyota. The automaker has recently announced a $500 million capital commitment, which brings its investment total in Joby to close to $1 billion. It is working closely with Joby on manufacturing and certification.

Another thing to consider is Joby just delivered its second plane to the US military. eVTOLs can be used to defend.

Certification

Joby is in the process of completing the fourth stage of five to be certified as an aircraft. The company expects to have this completed by the end of 2025 or early 2026. Therefore, a delay (or even a bigger one) is most likely the biggest chance currently.

STAGE	BASIS	JOBY	FAA
Stage 1	Certification Basis	100%	100%
Stage 2	Means of Complaince	97%	97%
Stage 3	Certification Plans	100%	100%
Stage 4	Testing and Analysis	53%	31%
Stage 5	Show and Verify	3%	1%

Joby Aviation Q4 2024

Another problem is insufficient demand from consumers, but the recent Honeywell study found that 98 per cent of US passengers on flights would think of using an electronic VOL.

The positive could be the cash flow. By the end of 2024, the company had $933m in cash, with no debt, and a $500 million commitment from Toyota. With the current rate burn rate at a rate of 4%, this $1.4bn will easily get it through commercial operations.

The cash flow will be needed, although I don’t think Toyota will pull out of its $900 million investment. Therefore, funding should not be a problem, however shareholder dilution might be a problem.

Unsophisticated takeaway

Joby is the pioneer of flying taxis, and they hold huge disruptive potential. However, it’s not yet profitable, which makes the stock highly uncertain. It’s, therefore, only appropriate for risk-averse investors with an extended horizon to think about.