Toyota Bets Another $500 Million on “Uber of the Skies”

Imagine gliding above bumper-to-bumper traffic in near silence, arriving at your destination in 15 minutes instead of the usual hour. No exhaust smell, no stress, just you, the sky, and your fancy flying taxi. (In case you’re wondering, I didn’t write this while I was high), that’s exactly what Joby Aviation is working on—and thanks to a fresh $500 million investment from Toyota, this “Back to the Future” dream is inching closer to reality.

Now, if you’re thinking, “Flying taxis? Yeah, right,” well, Joby’s stock shot up 27% after Toyota’s announcement, so Wall Street seems pretty hyped. Toyota’s no stranger to backing this futuristic project either. This latest pile of cash brings their total investment in Joby to nearly $900 million. Yeah, Toyota really wants these flying taxis to take off (pun intended).

Joby’s been dubbed the “Uber of the skies,” and it’s not just a clever nickname. Uber actually sold its flying taxi division to Joby back in 2020, and the two companies have been buddy-buddy ever since. They’re even planning to integrate these air taxis into the Uber app one day. So, imagine ordering your next Uber after a night out with the boys and a flying taxi shows up (talk about a flex).

Oh and Delta Air Lines is also on board (literally), with plans to roll out air taxi services in New York and Los Angeles. So, instead of spending an hour stuck in a cab from JFK to Manhattan, you could be cruising in the air and there in seven minutes flat. And yeah, it’ll cost you about as much as an Uber Black at first, but over time, it could be as cheap as a regular cab (I’ll believe that when I see it).

They’re also more than doubling their workspace and adding hundreds of new jobs at their California headquarters. They just broke ground on a 220,000-square-foot manufacturing facility, which is set to be fully operational by 2025. Not bad for a company that started just six years ago with a tiny team and a big idea. 

Obviously, the market for these things is massive. Morgan Stanley estimates that urban air mobility (a fancy term for flying cars) could be a $1.5 trillion industry by 2040. And with Joby already leading the pack, thanks to its head start on FAA certification and plans to kick off commercial service in 2025, they’re in a pretty sweet spot for customers and investors. 

Of course, it’s not all smooth flying (sorry, I had to). Joby’s still waiting on full regulatory approval, and there’s always a chance there will be delays. Plus, competitors like Archer Aviation are hot on their tail. But let’s be real—Joby’s got the edge with Toyota’s engineers working side-by-side with them, plus a solid plan for commercial production. Oh, and they’ve already got $825 million in cash to back it all up.

So yeah, flying taxis might sound like something out of The Jetsons, but with Toyota and Delta throwing big money at Joby, this could be happening a lot sooner than you think. 

So, is Joby Aviation stock worth grabbing? Well, they’ve got enough cash to keep the lights on for another 2.5 years, and their market cap is more than triple that of rival Archer Aviation. Plus, with over 40% institutional ownership, the big players clearly see some serious potential here. Wall Street’s also feeling pretty optimistic, slapping an “overweight” rating on the stock with a price target of $8.25—that’s a potential 35% upside from where it’s sitting now. 

P.S. This morning's massive alert has already popped to a peak of +16.27% so far! And guess what? It’s still roaring! Click here immediately to get the full details. 

Stock.News has positions in Joby, Delta, Archer, and Uber.