Joby Aviation Stock Surges: Is It a Buy for 2025?

Shares of Joby Aviation (NYSE: JOBY) are experiencing a significant increase today, driven by a blend of meme-stock enthusiasm and news that the Biden administration is contemplating measures to limit competition from Chinese drones.

These events have created a positive outlook for Joby, a company that specializes in electric vertical takeoff and landing (eVTOL) aircraft, with an aim to launch commercial services soon.

As of 12:29 p.m. ET, the stock has risen by 19.6% on this particular day.

Joby Receives a Positive Upsurge

Joby, alongside its competitor Archer Aviation, is seeing gains amid a resurgence of interest in high-risk stocks, particularly those in the development phase that are not yet generating substantial revenues. This activity suggests a bullish sentiment in the market, and Joby's stock has more than doubled since the end of October.

Additionally, there are reports fueling the optimism within the unmanned aerial vehicle (UAV) market. A Bloomberg report mentioned that the Biden administration is looking at new regulations that could prohibit Chinese-made drones due to security concerns. Commerce Secretary Gina Raimondo underscored that the drone technology supply chain is vital for national security.

Although it remains uncertain whether Joby will directly gain from these regulatory changes, the potential government protection could provide a boost for the company as it advances towards commercializing its air taxis. Ultimately, the decision regarding these regulations will depend on the administration's actions.

Should Investors Consider Joby Aviation?

Despite Joby Aviation not yet generating significant revenue, the company is progressing further in its development compared to Archer Aviation and has established partnerships with major businesses, including Toyota Motor and Delta Air Lines. Recently, Joby completed flight tests in Korea and received an FAA certification credit.

Looking ahead, 2025 is shaping up to be pivotal for Joby, albeit with challenges in making its air taxi services commercially viable. Investors should expect the stock to be subject to fluctuations as they anticipate advancements toward a full launch.

Author has no vested interest in any of the stocks mentioned. The information provided should not be considered as investment advice.

Joby, Aviation, Stock