In light of recent global defence developments, I explored US defence stocks. While many are already near all-time highs, making it less favourable for new entries, I came across an intriguing opportunity in Joby Aviation into the eVTOL industry
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Joby Aviation is the oldest player in the eVTOL (electric Vertical Take-Off and Landing) industry and has recently secured significant contracts from the US defence sector. Notably, Joby has partnered with key players such as Uber, for the launch of air taxis in 2025, and Delta Airlines, to provide home/hotel-to-airport transportation services. Additionally, Toyota is one of Joby’s strategic partners.
- Despite personal reservations about the current design of Joby’s aircraft, which I find impractical for private use, I recognize their potential to develop better solutions in the future. At its current trading price of approximately $8.95, I see considerable growth potential given its backing by major US companies and its positioning within the emerging eVTOL industry. It has already increased by almost 50% in last 2 months.
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Upon further research, I also identified Ehang, a Chinese eVTOL company directly supported by the Chinese government. Ehang’s designs are more appealing, and with strong governmental backing, this company is well-positioned for success in the private eVTOL market.
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In summary, both Joby Aviation and Ehang represent attractive investment opportunities within the growing eVTOL space, with Joby focusing more on air taxis and defence applications, while Ehang offers a strong alternative for private eVTOL vehicles. Given the significant industry partnerships and government support behind these companies, I believe they are poised for substantial growth.
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Recently, Toyota invested an additional $500 million in Joby Aviation, earmarked for commercial development and certification processes. Despite the short-term fluctuations, Joby remains a strong candidate for long-term growth, with the potential to be a futuristic leader in the eVTOL industry.
Disclaimer: It’s just a personal analysis. it’s not investment advice!Below are the Air-taxi designs of Joby Aviation and Ehang- for some cool info [1. Joby, 2.Ehang]
