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Joby Aviation (NYSE:JOBY) confirmed Wednesday that the Federal Aviation Administration (FAA) has approved flight testing for the company’s air taxi. The news sent both JOBY stock and its commercial aspirations skyward. Indeed, JOBY is up more than 37% today.
Interestingly, that’s not the only news out of Joby lately. The company announced that Tesuo Ogawa, Toyota (NYSE:TM) North America’s chief executive, will join the aviation company’s board of directors. Toyota is Joby’s single largest external shareholder, with a vested interest of about $400 million in the business.
Joby has a unique theoretical business model, even relative to other commercial aviation startups. The California-based company plans to operate something akin to a ride sharing business.
The company intends to launch commercial passenger operations for its electric vertical takeoff and landing (eVTOL) aircrafts in 2025, with aspirations to revolutionize modern emissions-less transportation.
JOBY Stock Soars on FAA Approval
With the FAA’s recent approval of a Special Airworthiness Certification, Joby can begin testing passenger-less prototypes of its initial production model.
While this is undeniably a major win for the aviation company, it’s worth noting that it’s rival, Vertical Aerospace (NYSE:EVTL), received a similar nod of approval in 2021. Though, Vertical announced just last month that its timeline to commercial use has been pushed back a year, to 2026.
“We believe the industry as a whole will experience some timeline corrections and we are already seeing signs of peers acknowledging this,” Vertical told shareholders.
Following its initial testing, Joby’s aircraft is to be sent to Edwards Air Force Base as part of Joby’s $131 million contract with the U.S. Air Force. Joby is currently scheduled to deliver its first two electric aircrafts to the Air Force in March 2024.
For fans of JOBY stock, today’s news should surely read like the cherry on top of an already delicious sundae. Indeed, JOBY is up 164% year-to-date. After today’s jump, JOBY is trending at just over $9 per share, its highest level since November 2021.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.