Joby Aviation (NYSE:JOBY) stock rose following the announcement of a $9.8 million grant from the California government, enhancing the eVTOL maker’s statewide expansion. The grant, awarded under the California Competes program, supports Joby’s facility build out in Marina, California.
This effort will aid increased manufacturing, pilot training, and aircraft maintenance. The funds will also contribute to hiring at Joby’s San Carlos and Santa Cruz facilities. Joby committed to investing $41.3 million, generating 690 jobs in California by 2027. The grant accelerates the FAA type certification program and supports initial commercial operations starting in 2025.
Here’s a deeper dig on the latest news on this electric vertical takeoff and landing (eVTOL) aircraft manufacturer, and more reasons to be optimistic with this stock.
JOBY Stock Q3 Earnings
Joby Aviation recently released its Q3 2023 Shareholder Letter, outlining operational and financial results. Key highlights include significant progress in FAA certification, the early delivery of an electric air taxi to the U.S. Air Force, successful pilot-on-board flights, and expansion plans for manufacturing facilities.
Joby concluded the quarter with a robust financial position, holding $1.1 billion in cash and short-term investments. This balance sheet strength is notable, and the company’s cash position should allow Joby to weather any near-term funding needs, allowing the company to recoup some of its costs via cash flows in the coming years.
Marina Expansion Will Impact Monterey County’s Economy
In September, Joby Aviation opted for Dayton, Ohio, over Marina, California, for its largest production facility, disappointing local leaders who had proposed incentives for a new factory. Despite having an existing facility in Marina, Joby chose Ohio for expansion.
Joby Aviation’s choice of Ohio over California raised concerns about the business climate, but despite the setback, optimism remained. Joby’s leadership, including CEO JoeBen Bevirt, expressed commitment to the Central Coast, planning a significant expansion in Marina with a $50 million investment and 600 new jobs.
Joby’s expansion in Marina signifies California’s commitment to advancing air mobility, emphasizing collaboration between government, community, and industry.
Despite economic challenges, the Central Coast proves attractive to cutting-edge tech and manufacturing companies, offering promising prospects for the region’s economic development.
JOBY Air Taxis in New York
By 2025, electric air taxis could zip passengers from JFK to downtown Manhattan in seven quiet, emissions-free minutes, emission-free journeys. Joby Aviation conducted a demonstration flight at the Downtown Manhattan Heliport, marking the first electric air taxi flight in the city and Joby’s inaugural urban flight.
The aircraft can recharge in about five minutes, aligning with passenger boarding and unloading. The envisioned model is akin to booking a trip through a rideshare app for seamless urban transportation.
Bottom Line
Overall, Joby Aviation is a promising company in the future world many envision, when it comes to urban travel. If the company’s FAA certification process completes in short order, this is a company that could gain significant market share in key markets. It’s a stock I’ve got on my watch list right now.
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.