Shares of electric vertical take-off and landing (eVTOL) aircraft developer Joby Aviation (NYSE:JOBY) are climbing higher in the pre-market session today. This comes after the company announced plans to set up its first scaled aircraft production facility in Dayton, Ohio.
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The facility is expected to support the production of up to 500 aircraft annually and create nearly 2,000 jobs. Joby expects to begin construction of the facility in 2024 and bring it online in 2025. While Joby plans to use existing nearby buildings to commence short-term operations, the 140-acre site will support substantial future growth.
Joby is planning to invest up to $500 million in the facility and has also been offered incentives and benefits to the tune of $325 million from the State of Ohio and local political subdivisions. The company has also been invited by the U.S. Department of Energy to submit a Part II application to receive financing under the Title XVII loan guarantee program.
The company’s production aircraft can transport four people, achieve speeds of up to 200 mph, and has a range of 100 miles. Joby plans to set up aerial ridesharing networks in cities across the world and counts Toyota (NYSE:TM) as its long-term investor and advisor.
Is Joby a Buy, Sell, or a Hold?
Overall, the Street has a consensus price target of $8 on Joby, alongside a Hold consensus rating. This implies a 22.3% potential upside in the stock.
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