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Joby Aviation (JOBY) will quickly become the “Uber of the Skies” as a builder and operator of the world’s most advanced, electric-powered heli-taxis poised to transform short-haul travel, writes Adam Johnson, editor of Bullseye Brief.

Joby grew out of the $6.5 billion SPAC created by LinkedIn Co-founder Reed Hoffman and Zynga Founder Mark Pincus. It is the world’s first Electric Vertical Takeoff and Landing (eVTOL) manufacturer to receive FAA certification and US Air Force airworthiness. It’s also the first company to deliver a working eVTOL to the Air Force for actual mission testing.

Joby aims to launch commercial service by 2024/5, operating short-haul flights priced similarly to UberX and with the energy efficiency of a Tesla -- all while cutting travel time by 75% for the typical 25-mile trip. Joby will build and operate its own fleet, initially ferrying travelers between airports and large urban centers like Los Angeles and New York.

Management guidance of $2 billion in revenue by 2025/6 pegs valuation at 1.3x EV/Sales. This is cheap compared to 3.5x for other transformative companies at similarly early stages of their evolution (First Solar, Square, Tesla, Uber). Notably, these companies have traded as high as 11x on average.

Toyota, Delta, and Intel are all equity partners, collectively owning over 20% of the company. ARKK Founder Cathie Wood initiated a position mid-2023. To quote lead investor Reed Hoffman, “My ideal investing is stuff that looks crazy now and in 3-5 years is obvious.”

I believe we will say the same of Joby.

About the Author

Adam Johnson is the founder and author of BullseyeBrief.com, a weekly investment letter that explores American Ingenuity through actionable stock picks. He also runs the American Ingenuity portfolio at Kensington Investment Counsel.

Previously, he anchored several daily programs at Bloomberg Television, interviewing CEOs, heads of state, and prominent investors. During his three-decade career on Wall Street, he has traded stocks, options, and oil for ING Asset Management, Louis Dreyfus, and Merrill Lynch. He graduated from Princeton with a degree in economics. He resides in New York City.

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