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Joby Aviation leads the race for the certification of the Federal Aviation Administration.
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The vertically integrated business model of the company means that expanding its manufacturing capacity is even more critical for investors.
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Joby has the support of key companies that will improve its prospects for offering its air taxi services while managing its fleet.
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10 actions that we love better than Joby Aviation ›
Actions of the Electric Society for Verical Takeoff and Landage (EVTOL) Aviation Joby (NYSE: JOBY) climbed 57.9% in July, according to data provided by S&P Global Market Intelligence. This decision occurred largely after the news announced that Joby announced the expansion of its manufacturing site in California and, in doing so, has doubled its capacity to produce aircraft. In addition, Joby has expanded an installation in Ohio which will make and test the components. This is an important development for two main reasons.
First of all, it is a sign of growing confidence in its current certification process. The latest news on this front came from the recent announcement according to which Joby “is preparing for the final assembly of his first compliant plane intended for tests in theft of type inspection (TIA)” with the Federal Aviation Administration (FAA).
The management plans to finish its first TIA flight this year while it is heading for the final certification.
Second, the news is particularly important for the company because of its vertical integration strategy. In this case, “vertical” management mainly means designing and manufacturing its EVTOL components internally. This differentiates it from Evtol competitors as Aviation archer Or Vertical aerospacewho have technological partners. As such, Archer and Vertical Aerospace both think that their commercial models should lead to a faster certification process and with less risk attached.
However, it seems that Joby directs the domain in terms of FAA certification, and the expansion of its manufacturing capacity helps to remove the stock of one of the most important fears of investors: the possibility that its vertically integrated model creates manufacturing problems for a young company.
While Joby has a vertically integrated model, he also has investments and a manufacturing alliance with Toyota. The Japanese car company has invested $ 894 million in Joby, and Toyota works with Joby to help optimize its manufacturing processes.
Furthermore, Uber Invested $ 125 million in Joby so far, the company Evtol acquired Uber Elevate. This is a key element of the global business model of Joby, which involves the possession and exploitation of its own fleet of aircraft and the offer of transport services (air taxis) itself rather than selling aircraft to other operators.
