Flying cars are rapidly moving from science fiction to real life. That includes Joby Aviation ( JOBY ), which could fly to higher altitudes this year. For starters, it’s working with Uber ( UBER ) and expects to fly its first passengers in Dubai later this year. Second, Joby is also working with the Federal Aviation Administration (FAA), which will eventually lead to commercial service in the United States.
We should also mention that Jobbi’s $125 million acquisition of Blade Air Mobility’s passenger business will help accelerate Jobbi’s way to do business. It also gives Jobbi valuable infrastructure, including landing terminals in major cities around the world and operational expertise. Plus, it doesn’t hurt that the White House chose Jobe Aviation for its eVTOL pilot program, which serves as a big endorsement of the company’s position as a leader in advanced air mobility.
Morgan Stanley says risks around certification and adoption remain. But the company believes that Jobbi has a big share due to its partnership with Uber. Once integrated, users will be able to book Joby flights directly through the Uber app. All this will give the company instant access to a large customer base. In addition, the $125 million acquisition of Jobi’s Blade Mobility passenger business accelerates commercialization with access to Blade’s 12+ terminals in key markets such as New York, Los Angeles and Europe. It also provides access to Jobi’s large customer base. In the meantime, Jobi continues to progress toward certification with the US FAA, which could greatly improve upon overcoming this hurdle.
Morgan Stanley also says that we’ll be looking at a potential $1.5 trillion flying car market opportunity here by 2040, rising to $9 trillion by 2050. According to McKinsey, “People are ready for flying taxis. Across geographies, more than 15 to 20 percent of survey respondents say they can upgrade from their current mobility model to a flying taxi service in the future. True, some analysts argue that JOBY is still in the early stages of growth, but sometimes it pays to get in on the ground floor.”
With Pentagon contracts to develop hybrid-electric eVTOL aircraft for military logistics, corporate partnerships (e.g. Uber), and the acquisition of Blade Air Mobility, the company posted better-than-expected earnings and improved guidance.
