In every sector, investors are looking for stocks that have outperformed. In the transportation sector, Joby Aviation (NYSE:JOBY) is one such stock I’ve been following closely recently. Indeed, as far as the overall transportation sector is concerned, JOBY stock has blown its peers out of the water.
In the more volatile electric vertical takeoff and landing (eVTOL) space, Joby has still performed well among the leading stocks in the high-growth flying electric taxi space.
But can this continue? Let’s dive into why this could be the only flying car stock that matters now.
$93M Tax Credit Granted to Joby Aviation
The Ohio Tax Credit Authority granted a 2.055%, 30-year Job Creation Tax Credit to attract Joby Aviation to build an electric vertical takeoff and landing vehicle manufacturing operation near Dayton International Airport, with a facility targeted to be operational by 2025.
Joby Aviation could potentially employ 1,200 to 2,000 workers in Dayton, Ohio, following the approval of a 30-year Job Creation Tax Credit valued at an estimated $93 million. JobsOhio is also considering a $110 million grant to support the development of Joby’s workforce in the Dayton area. The tax credit is performance-based, requiring the company to meet job creation and payroll commitments over 30 years to receive the credit. This allows Joby to claim a 2.05% credit on the new Ohio payroll related to the project location.
Ohio recently approved tax credits for projects aiming to create 2,247 jobs and safeguard 63 existing positions, projecting over $152 million in new payroll and $482 million in investments. The state anticipates a $140 million annual payroll boost from Joby’s new manufacturing plant, announced on Sept. 18, capable of producing 500 aircraft annually. Joby’s CEO, JoeBen Bevirt, envisions commercial air taxi service by 2025.
JOBY Pushes Universal Electric Charging System
Joby Aviation urges the electric aviation sector to adopt its innovative charging system over the automotive-based standards proposed by competitors Archer Aviation and Beta Technologies. This competition may shape the future of electric vertical take-off and landing aircraft charging infrastructure. With over a decade of experience building and flying electric airplanes, Joby is uniquely positioned to lead in this technology.
Joby’s “universal” interface, designed specifically for aviation, caters to the distinct needs of electric aircraft, differentiating itself from competitors.
Joby’s charging system has distinct advantages: simultaneous charging of independent battery packs, integration of battery conditioning for optimal capacity, and prioritized cybersecurity meeting FAA requirements. Joby shares its specifications for industry-wide consideration and adoption, fostering innovation and collaboration in the evolving electric aviation sector.
Buy JOBY Before It’s Too Late
Joby’s Q3 2023 results bring positive developments: 84% of FAA certification plans accepted, an early delivery of an electric air taxi to the U.S. Air Force, and a $1.1 billion cash buffer. JOBY stock, undervalued, is poised for potential growth.
Plus, amid the rising momentum of the eVTOL industry, it stands ready for success, making it a compelling investment for those eyeing the future of urban air mobility.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.