Morgan Stanley Advises Caution on Joby Stock Despite eVTOL Sector Momentum

Joby Aviation's stock has surged 100% year-to-date, dwarfing broader market returns and outperforming peers in the electric vertical takeoff and landing (eVTOL) sector. Morgan Stanley analyst Kristine Liwag attributes this rally to tangible progress toward FAA certification—the critical milestone for commercial viability.

The company has accelerated operations through strategic moves: acquiring Blade Air Mobility's passenger division, forming partnerships with ANA Holdings and L3Harris Technologies, and conducting international test flights in Dubai and Japan. These developments coincide with participation in the WHITE House's eVTOL Integration Pilot Program.

Yet challenges remain. Joby trails its ambitious 2021 de-SPAC timeline for certification, tempering near-term expectations. 'The market is pricing in execution risk,' observes Liwag, maintaining a cautious stance despite the sector's disruptive potential in urban mobility.