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SUMMARY
- Joby Aviation, a startup that is developing electric vertical takeoff and landing, or eVTOL, vehicles, has announced a public offering to sell up to $300 million in common stock.
- Additional, Joby raised $222 million in October, bringing the total possible raise to $522 million as it prepares for a 2025 commercial launch.
- These funds will be applied towards certification, manufacturing and working capital.
- Joby plans to start launching air taxis in New York, Los Angeles, Dubai and Abu Dhabi, with the backing of Delta Air Lines, Uber and the Department of Defense.
Joby Aviation has launched a public offering to sell up to $300 million in shares of common stock as the electric vertical takeoff and landing vehicle maker prepares for its market launch in 2025.
This is based on $222 million raised in October with the potential total raise increasing to $522 million. It will support Joby's certification, manufacturing efforts, and general working capital needs as it moves toward launching its air taxis for urban transportation.
The company, which has received $2.6 billion so far, aims to start deploying its eVTOLs in New York City and Los Angeles next year with the help of Delta Air Lines and Uber and in Dubai and Abu Dhabi. The company also holds a contract worth $131 million from the Department of Defense for the development of eVTOLs in military use.
The aircraft must be completed first in type certification process which would mean that the Joby's aircraft will pass its safety and airworthiness tests before the commercial launch. All these were made possible when, last week, the Federal Aviation Administration declared it had opened the way for the so-called eVTOLs to cohabitate in U.S. skies with traditional helicopters and airplanes.
Joby's also announced a $500 million investment from Toyota, an existing investor, earlier this month. The company is now getting ready for its 2025 launch and moving forward with its eVTOL certification and manufacturing processes.
Business Model of Joby Aviation
- Air Taxi Services: Joby expects to generate revenue through its ride-sharing model, just like the ones on the ground such as Uber. Their eVTOL aircraft will be starting with pilots and providing air rides at competitive prices against traditional ride-sharing. They aim to lower costs over time with scale and the possibility of autonomous technology adoption.
- Diverse Applications: Joby also envisions the following use cases besides passenger service, which can drive revenue: cargo transport, disaster relief, and medical evacuations.
- Vertical Integration: Joby manages both design, manufacturing, as well as planned operational services, giving them better control of quality, cost, and scalability.
The company will focus on urban air mobility to solve congestion problems in large cities like Los Angeles, Tokyo, and New York, allowing for faster commuting across difficult terrains like mountains or water bodies.
Joby is currently pre-revenue and heavily investing in research, development and regulatory certification. The equity financing of operations includes public offerings and partnerships. Going forward, the profitability will largely depend on scaling air taxi services, achieving economies of scale, and penetrating key urban markets.
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