Could Buying Joby Aviation Stock Today Set You Up for Life?
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Could Buying Joby Aviation Stock Today Set You Up for Life?

July 26, 2025
06:23 PM
5 min read
AI Enhanced
investmenteconomystocksfinancialindustrialtechnologymarket cyclesseasonal analysis

Key Takeaways

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different models with varying risks and rewards, and Joby...

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5 min read

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investment

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Published

July 26, 2025

06:23 PM

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The Motley Fool

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Key Topics
investmenteconomystocksfinancialindustrialtechnologymarket cyclesseasonal analysis

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario

Different companies have different models with varying risks and rewards, and Joby Aviation (JOBY -1. 88%) is arguably the one with the most reward and also one that's reducing its risk the most in 2025

Is it enough to make it a stock that could set investors up for life

Furthermore, Here's the lowdown, given the current landscape

Moreover, What makes Joby Aviation different It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (ACHR -0. 89%) makes for a fascinating comparison

In contrast, The first conclusion is that they have significantly different models, in today's financial world

However, However, The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real gress in de-risking the elements of its that are subject to greater market uncertainty

In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines, in today's market environment

Nevertheless, At the same time, Its model is different from Archer's and the rest of the industry in two key ways: Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its nology in-house, having its own powertrain and electronics manufacturing facility in California

Additionally, At the same time, As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will der transportation services to customers (quite telling), given the current landscape. " Both points are crucial to understanding the investment case

Joby's in-house development Archer, along with other eVTOL companies such as Germany's Lilium and the U (fascinating analysis). 's Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in viding solutions

Moreover, The analysis reveals advantage of heavy integration with established partners in nology is a simplified and less risky cess, which, theoretically, leads to earlier certification

Additionally, Image source: Getty Images

For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor), given current economic conditions

Honeywell is a key strategic nology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo, given current economic conditions

Nevertheless, Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and pulsion unit sensors

However, As such, Joby's more "go it alone" apach could be deemed more risky

Additionally, However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota (which is quite significant)

Moreover, the Japanese giant is assisting in imving Joby's manufacturing cesses and optimizing design, in today's financial world

A vertically integrated transportation company Here again, Joby is different (quite telling)

Market analysis shows doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself

Again, this is a more risky model, as it implies commercial expertise in addition to re & development and manufacturing expertise, in light of current trends

It's somewhat akin to Boeing or Airbus deciding to operate an airline

Moreover, On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services

On the other hand, On the other hand, Similarly, Delta Air Lines is up to $200 million in Joby to transport passengers to airports

Moreover, With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus

Image source: Joby Aviation, considering recent developments

Can Joby Aviation be a life-changing investment (which is quite significant)

Given the current trends in the global economy, whereby nology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's model makes perfect sense and has the potential to create more value for holders over the long term, in this volatile climate

Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota duction System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others

There are no guarantees in nascent nology fields such as eVTOL, and diversification is key when in growth stocks (which is quite significant)

Still, Joby Aviation is a strong candidate for an investment that could set you up for life.