Joby Aviation Inc. is making significant progress towards its goal of building a business around electric-powered flying taxis, as it has received approval from the Federal Aviation Administration (FAA) to expand its testing capabilities. This approval marks a major milestone for the California-based company, as it can now test its flying taxis that are rolling off the production line, rather than being limited to testing only the prototypes.
Previously, Joby could only test a hand-made prototype, but with the approval received from the FAA, it can now test its production-ready aircraft, with the first unit set to be produced on Wednesday. This is a crucial step towards the commercialization of the air taxi concept and demonstrates the progress Joby has made in developing a reliable and efficient electric aircraft.
In another boost to Joby, Tetsuo Ogawa, the president of Toyota Motor Corp.'s North America division, will be joining Joby's board starting from July 1. Toyota, which is currently Joby's largest outside investor with a 12% stake, has been instrumental in helping the company enhance its production capabilities. The companies also have a long-term agreement in place, with Toyota providing powertrain and components for Joby's aircraft.
Joby's stock surged by 22% following the announcement, reflecting the market's optimism regarding the company's future prospects. Joby is one of several firms aiming to create a new category of small, electric-powered aircraft designed to transport passengers across cities, offering a solution to urban congestion. The aircraft is designed to take off vertically like a helicopter and then fly like a small plane. The FAA recently stated that such aircraft will initially be regulated as helicopters.
Furthermore, Joby boasts reputable shareholders such as Delta Air Lines Inc. and Intel Corp., further solidifying its position in the growing urban air mobility sector. The company has also secured a $131 million contract to deliver electric vertical take-off and landing aircraft to the US Air Force, making it the first paying customer for Joby's production units.
With regulatory approval for expanded testing and production milestones being reached, Joby Aviation Inc. is positioning itself as a leader in the electric air mobility industry. As the company prepares to deliver its eVTOL aircraft to the US Air Force next year, it is clear that Joby is well on its way to revolutionizing urban transportation with its innovative and sustainable air taxi concept.