Joby's Shares Surge Following a $100M Capital Injection and FAA Approval for Test Flights

Joby Shares Soar After $100M Investment, FAA Test Flight Approval. Electric aircraft maker exploring aerial ridesharing or air taxis in South Korea. Shares of Joby Aviation (JOBY), which is pioneering electric aircraft for commercial passengers, soared by as much as 30% in early trading on Thursday following the announcement of a $100 million infusion from South Korean telecommunications giant SK Telecom (SKM).

Key TakeAway

• Joby Aviation garnered a $100 million capital injection from SK Telecom, marking a substantial equity investment.
• Toyota and Uber were among the initial backers of the eVTOL air taxi company during its nascent stages.
• Test flight plans have also obtained the green light from aviation regulators in the United States.

SKT is actively engaged in the pursuit of aerial ridesharing or air-taxis, in collaboration with the Korean Ministry of Land, Infrastructure and Transport. The recently announced equity investment agreement, unveiled on June 29, has the potential to unlock remarkable prospects for Joby's significant involvement in the country's "K-UAM Grand Challenge," which aims to showcase the viability of an air taxi service.

"Our alliance with SKT strategically positions Joby to leverage the immense opportunities offered by the Korean market, which is consistently demonstrating strong governmental support for the realization of aerial ridesharing," expressed Joby's Founder and CEO, JoeBen Bevirt. Ryu Young-sang, CEO of SKT, emphasized that commercial air travel "holds the promise of significantly reducing travel time for customers."

Joby has now secured a cumulative funding of $2 billion, with approximately $400 million contributed by Japanese automaker Toyota (TM). Notably, U.S. ride-hailing firm Uber (UBER) also participated as an investor before Joby's initial public offering (IPO) in August 2021, as per data from Crunchbase. In a recent announcement, Joby disclosed that Tetsuo Ogawa, CEO of Toyota North America, will be joining its board effective this Saturday.

Test flights have received approval from U.S. aviation regulators, and the company initiated the production of its new electric vertical takeoff and landing (eVTOL) aircraft on Wednesday. This milestone marks the commencement of a $131 million contract with the U.S. Air Force, encompassing the creation of nine vehicles.

According to analysts at McKinsey, advanced air mobility (AAM) operators have the potential to match the flight frequency and fleet size of today's major airlines by 2030.

Joby shares have witnessed a remarkable year-to-date surge of more than 210%.