Joby stock forecast

JOBY Stock Forecast: ANA partnership to bring Air Taxi to Japan

Early last year, SPAC Reinvent Technology (NYSE: RTP) announced a merger with Air Taxi Company, Joby Aviation, which would see the combined company list on the New York Stock Exchange. Fast forward to today, Joby Aviation Stock has struggled to maintain the same investor hype we saw in 2021. Nevertheless, the company is making ground on its plans to launch its air taxi service, announcing deals with ANA and SKT which will bring Air Taxi’s into Asia.

The funds raised from the transaction will continue to fund Joby Aviation in their 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.

Joby Aviation Makes Ground Expanding Its Air Taxi Service

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).

Joby’s recent partnership with ANA and Toyota may be its biggest announcement so far. Japan’s largest airline join will work with Joby to bring aerial ride sharing services to Japan. Toyota Motor Corporation also joined the partnership, with the intention of exploring opportunities such as ground-based transportation.

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 in revenues 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.

Looking at the logistics, Joby’s 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, Joby Aviation is making ground in expanding their services across Asia with their ANA and SKT partnerships. Furthermore, the funds raised from the merger are 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 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.

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