In early February, Reinvent Technology Partners (NYSE: RTP) announced a reverse merger with Joby Aviation. This announcement made waves on Wallstreet, as tech innovator Joby Aviation announced its plans to launch its Air Taxi service in 2024. The aviation company is now listed on the New York Stock Exchange under the ticker NYSE:JOBY.
The funds raised from the transaction will allow Joby Aviation to start commercial operations, including the needed certification of their aircraft and development of manufacturing facilities.
Joby Aviation plans to break into the merging eVTOL industry which is approximately worth upwards of $1 Trillion USD. So what does the future look like for Joby Aviation? Here’s the Joby Aviation stock forecast over the next 5 years.
Table of contents
Why the hype for Joby Aviation stock?
Firstly, Joby Aviation have been developing a piloted eVTOL over the past decade, with over 1,000 test flights conducted to date. The company is the first to be granted airworthiness approval for an eVTOL aircraft by U.S. Air Force.
Furthermore, Joby Aviations aircraft have been designed in a cost effective manner allowing for an affordable Air Taxi service/platform. The company also has close ties with Toyota in a strategic partnership to assist in manufacturing development alongside its relationship with Uber after acquiring its Uber Elevate division (aerial ride sharing).
Later this year the company expects to begin construction on its 450,000 square foot manufacturing facility.
Joby Aviation stock forecast over the next 5 years
Looking forward, the company expects to begin recognising revenue in 2024 following the commercialisation of their AirTaxi Service. In the first year of commercialisation, Joby expects to record $131 million according to Joby’s investor presentation.
Furthermore, revenue is expected to grow to $721 million in 2025 and reach $2 billion by 2026. By 2026, Joby Aviation expects to have 963 aircraft manufactured.
These aircraft are expected to have a 15 year life span in operation according to the company. The cost per aircraft is expected to be upwards of $1.3 million according to Joby estimates.
Looking into the next 10 years of operations, the company expects to have 14,000 aircraft operating with a revenue of $20 billion. It expects to be operating in 20 different cities and be the leading operator of aerial ride sharing vehicles.
Although these are impressive numbers, investors should review these forecasts with caution as these numbers are only predictions based on all future assumptions being met. Nevertheless, we can see why investors are excited about the future of Joby Aviation stock.
The Bottom Line – Joby Aviation stock forecast
In conclusion, the completed merger looks to provide investors another entry point into the eVTOL industry. Furthermore, the funds raised from the transaction will provide Joby essential capital needed to progress the companies vast expansion plans.
Joby Aviation also have a very strong outlook on revenue and growth. However, investors must tread with caution as the company won’t generate any revenue until 2024 assuming it meets all requirements to commence its Air Taxi service.
All in all, this is an exciting opportunity for both Reinvent Technology and Joby Aviation as they begin a new chapter in the way we travel.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Subscribe to our Youtube channel here.
We are now official partners with Tradingview
Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.
Looking to start trading in Australia or the UK?
Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.
In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.