Investors are cheering Joby Aviation Inc (NYSE: JOBY) this morning following news that Toyota has invested $250 million in the urban mobility company.
While the initial reaction to the Toyota development has been positive, the announcement by itself shouldn’t particularly come as a surprise for JOBY shareholders.
Why? Because the said investment is actually a part of the broader $500 million deal that Toyota signed with Joby Aviation in the final quarter of 2024.
So, it’s not entirely unreasonable to argue that Joby Aviation stock has overreacted a little on Wednesday.
That said, the eVTOL company is not at all short of reasons to warrant an investment in 2025.
Joby Aviation stock is attractive due to robust financials
JOBY remains worth owning for the back half of 2025, partially because of its robust cash position.
The urban air mobility firm ended its latest reported quarter with more than $800 million in cash and short-term investments.
In comparison, its burn rate currently sits at a little over $500 million.
Top it up with half a billion from Toyota, and you have an eVTOL pure-play that has meaningful leeway for aircraft certification and its commercial launch initiatives.
In fact, the NYSE-listed firm is “already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimising design,” its chief executive, JoeBen Bevirt, revealed in a press release today.
Additionally, Joby Aviation teamed up with Delta Air Lines in 2022 and more recently with Virgin Atlantic to commence its air taxi operations in the UK, which strengthens its competitive position in the fast-growing market for electric vertical take-off and landing aircraft.
Together, these tailwinds paint a rosy picture of what the future holds for Joby Aviation stock.
Continued progress on FAA certification could help JOBY shares
Joby Aviation Inc could prove a lucrative investment over time, also because it’s advancing rather quickly towards full FAA certification.
The company has already completed nearly 45% of the FAA’s capital-intensive fourth stage of aircraft certification.
Plus, the urban air mobility firm has achieved another landmark milestone in 2025.
In April, JOBY successfully tested its electric air taxi with a pilot on board, proving its aircraft is getting closer to being safe and ready for commercial flights.
This was a major breakthrough for Joby Aviation since none of its rivals have routinely performed such an inhabited test so far.
JOBY shares are attractive at current levels as the NYSE-listed firm is expected to begin pilot-onboard testing in Dubai over the next few months as well.
Is it too late to invest in Joby Aviation Inc in 2025?
Canaccord analysts view the aforementioned tailwinds as sufficient to remain uber bullish on Joby Aviation stock in 2025.
The investment firm currently has a $12 price target on JOBY shares that translates to potential for another 40% upside from current levels.
The post Joby Aviation stock soars on Toyota investment: is it too late to buy? appeared first on Invezz