Picture weaving through city skyscrapers in a quiet, emissions-free aircraft that takes off like a helicopter but flies with the efficiency of a plane. That’s the goal of America’s two leading electric vertical takeoff and landing (eVTOL) aircraft manufacturers, Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR).
Since going public at the start of the decade through special purpose acquisition company (SPAC) mergers, shares of both companies have lost ground, reflecting the capital-intensive nature of developing a novel form of aviation.
That said, Joby and Archer have both staged a remarkable comeback, with shares of each air taxi pioneer rallying sharply over the past six months (see graph below). This surge in investor interest comes at a critical moment. Both companies are in the final stages of their certification processes and plan to launch commercial operations in the coming months.
While their shared goal remains to transform urban mobility, Joby and Archer are taking divergent paths. Archer recently expanded into defense applications through a partnership with Anduril Industries, while Joby has strengthened its alliance with manufacturing giant Toyota (NYSE: TM), leveraging the automaker’s expertise in mass production and quality control.
While Archer has captured most investor attention early in the new year, Joby has equally ambitious plans for 2025. Here’s a look at whether Joby’s stock screens as a compelling buy as it prepares for takeoff.
Joby’s eVTOL aircraft combines helicopter-like takeoff flexibility with fixed-wing aircraft speed and efficiency. The aircraft can carry four passengers and a pilot at speeds of up to 200 mph while operating far more quietly than traditional helicopters.
The aircraft’s unique design makes it particularly suited for urban operations. Its low noise profile allows for operations in dense city environments where helicopter noise has historically faced strong opposition, while its 100-mile range covers over 99% of potential routes in major markets like New York City and Los Angeles.
In December 2024, Joby’s path to commercialization reached a critical milestone with its first Type Inspection Authorization (TIA) testing, marking entry into the final phase of Federal Aviation Administration (FAA) certification. The company has completed three of five FAA certification stages and over 40% of the fourth stage, putting it ahead of most competitors in the certification process.
