2024-05-03 13:45:24 ET
Summary
- Joby Aviation, an aerial rideshare company focused on building eVTOL aircraft, is facing significant net losses and cash outflows.
- The company's revenue is still insignificant compared to its market capitalization, and its losses and cash outflows have been worsening year over year.
- Joby Aviation's future profitability and cash flow positivity are unlikely in the near term, making it a risky investment.
Earlier this year, in February to be precise, I wrote an article that took a rather neutral stance on aerial rideshare company Joby Aviation ( JOBY ). For those not familiar with the company, it's focused on building eVTOL (electric vertical takeoff and landing) aircraft. At the end of the day, the goal is to essentially act as an Uber of the airways, transporting people using these aircraft in what will almost certainly be hyper-dense population centers. Although this is exciting, and it is a market that I recognize as being large and potentially profitable, with an estimated value by 2030 of $45 billion, I could not get past the fact that the business was generating significant net losses and seeing large cash outflows....
Read the full article on Seeking Alpha
For further details see:
Joby Aviation: Still No Liftoff As Q1 Earnings Near