Joby Aviation’s Strategic Acquisition of Blade’s Passenger Business Sparks Market Volatility

Joby Aviation (JOBY) surged 18.8% on Monday after announcing its acquisition of Blade Air Mobility's (BLDE) passenger segment for up to $125 million in cash or stock. The deal grants Joby immediate access to key urban air taxi markets in New York City and Southern Europe, leveraging Blade's established network of 50,000+ annual passengers.

Investors initially celebrated the strategic move, boosting Joby's market cap by $2.7 billion—a 20x ROI on paper. However, enthusiasm waned Tuesday as both stocks retreated post-Blade's Q2 earnings release, with JOBY down 5% and BLDE plunging 10.8% after Monday's 17.2% rally.

The acquisition excludes Blade's medical division, focusing instead on vertical integration for Joby's planned air taxi launch. Market reactions suggest lingering questions about valuation and integration risks despite the clear synergy between Blade's operational footprint and Joby's technological ambitions.