Joby Aviation (NYSE:JOBY) shares are in focus today after Kerrisdale Capital claimed that the electric vertical take-off and landing (eVTOL) aircraft developer is still a long way off from generating operating revenue in a short report. Kerrisdale does not expect Joby to “ever” eke out an economic profit and termed the company’s plan to produce eVTOLs in large numbers and at a unit cost of $1.3 million as “naive.”
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Further, the short report noted that the physical limitations of lithium-ion batteries mean only limited use cases for Joby’s eVTOLs and that there is no conceivable economic case for air taxis that would not work for helicopters.
In the last two months, Joby has expanded testing to flights with onboard pilots and delivered its first air taxi to the U.S. Air Force. Reportedly, in response to the short-seller allegations, the company has encouraged investors to review its public filings for accurate information.
Importantly, the short report comes fresh on the heels of the company noting that it is on track to make its air taxis commercially available in 2025.
Is Joby a Good Stock to Buy?
Overall, the Street has a consensus price target of $9 on Joby, alongside a Moderate Buy consensus rating. This points to 37.2% potential upside in the stock.
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