Shares of Joby Aviation (JOBY) jumped on Tuesday after it signed a deal with Abdul Latif Jameel to explore setting up a distribution agreement in Saudi Arabia for its electric aircraft. This agreement builds on the renewed partnership between the U.S. and Saudi Arabia that is aimed at increasing innovation and improving transportation. As part of the deal, there is the potential for the delivery of up to 200 Joby aircraft and related services, which could be worth about $1 billion over the next few years. In the long run, both companies also see more opportunities to make money across the Middle East.
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Interestingly, Joby said that selling aircraft directly through companies like Abdul Latif Jameel is a key part of its growth strategy. It is also worth noting that the aircraft are all-electric and designed to carry four passengers at speeds of up to 200 mph. In addition, they are much quieter than a helicopter and produce no emissions while flying. As a result, Joby sees this as a cleaner, quieter way to move people quickly in and around cities.
Notably, Joby plans to begin carrying passengers in Dubai starting in 2026, which would be a big step in its goal to bring electric air travel to urban areas. The new partnership not only helps Joby enter the Saudi market but also supports the broader ties between U.S. companies and Middle Eastern investors in the fast-growing electric aviation industry.
Is JOBY a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JOBY stock based on four Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average JOBY price target of $8.29 per share implies that shares are fairly valued.
