Joby Aviation Crashed 15% Today – Time to Buy the Dip or Bail Out?
Another brutal day for eVTOL stocks as Joby Aviation nosedives on mixed earnings. The 'flying taxi' pioneer now trades at half its 2024 peak – is this the ultimate contrarian play or a falling knife?
Why the selloff?
Markets shredded JOBY after Q2 cash burn outpaced revenue growth. Short sellers are circling like vultures over a fresh carcass.
The bull case
True believers point to FAA certification progress and United Airlines' order backlog. 'This is Tesla 2012,' claim the retail bagholders.
Reality check
Until those magical flying taxis actually generate revenue beyond PowerPoint slides, this remains a speculative bet on regulatory goodwill and cheap capital – both of which are evaporating faster than a meme coin's liquidity.
Final verdict: Only play with money you can afford to lose – and maybe keep some aside for the inevitable secondary offering.
Image source: Getty Images.
Is Joby Aviation stock a buy?
For a company with a market capitalization of roughly $13.6 billion, Joby Aviation has generated a minuscule amount of revenue. The company has yet to commence commercial sales and operations for its eVTOL craft, and it seemingly still has some big hurdles to clear to receive regulatory certification in the U.S., despite seemingly having an easier runway to regulatory approval in Saudi Arabia and other markets.
Even after factoring in the impact of today's valuation pullback, Joby stock is up roughly 112% across 2025's trading. The stock is still a very high-risk play even on the heels of recent sell-offs.
While Joby seemingly has a leading position in the market for eVTOL crafts in the U.S. and other major markets, the trajectory for commercialization remains highly speculative. The stock could be a worthwhile portfolio addition for investors who have high risk tolerance and want exposure to the potentially explosive eVTOL market, but the degree of uncertainty on the horizon suggests that shares could be too volatile for more risk-averse investors even on the heels of the recent pullback.
