Thinking of Buying Joby Aviation? Here Are 3 Red Flags to Consider First.

Joby Aviation (NYSE: JOBY) has become one of the most closely watched names in electric aviation. The company aims to make air taxis a reality for everyday use -- offering fast, quiet, and zero-emission flights across congested cities.

The story is bold. Backed by Toyota Motor, ANA Holdings, and a pending deal with Blade Air Mobility, Joby looks well-positioned to lead the electric vertical takeoff and landing (eVTOL) race. Its regulatory progress and international partnerships have also made the stock a popular talking point among early investors.

But excitement doesn't equal investability. Joby's long-term vision is compelling, yet the road ahead still carries significant risks. Before purchasing the stock, investors should be aware of three key red flags that could impact its future performance.

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1. Limited commercial revenue

Despite years of engineering progress and growing global partnerships, Joby remains a pre-revenue company. While it generated $15,000 in revenue in the first half of 2025, that amount isn't significant compared to its expenses. Management expects commercial service to begin in 2026, but for now, every dollar it spends must come from its cash reserves.

To put that into perspective, in the second quarter of 2025, Joby posted an operating loss of $168 million and an adjusted EBITDA loss of $132 million. Its six-month cash burn was approximately $245 million (operating cash outflow plus capital expenditures), or roughly $500 million annually. The company ended the quarter with $991 million in cash and short-term investments -- sufficient to fund operations for approximately two years at current spending levels.

That's a good two years of runway, but not enough to reach profitability. Joby will likely require additional funding, whether through equity or debt, before it generates significant revenue. Any new financing could dilute existing shareholders or add leverage to its balance sheet.

In other words, investors should view Joby for what it is today: a company still in its development phase, not yet a fully functioning business.

2. Certification and execution risk remain high

Joby's future hinges now on a key milestone: FAA certification. Without it, the company can't fly passengers or deliver aircraft. The good news is that Joby leads the pack. It's now more than halfway through Stage 4 of the FAA's type certification process. Its first "conforming" aircraft -- the production-standard version -- is already in final assembly, and the company expects flight testing with the FAA to begin in 2026.

That progress gives Joby a clear edge, but certification for eVTOL aircraft remains uncharted territory. The FAA has never approved a design of this kind before. Even minor technical questions or new safety requirements could delay the process, pushing commercial flights further into the future.

And certification is only the beginning. Producing hundreds of aircraft while maintaining tight safety standards will test Joby's operations. Aerospace programs frequently encounter cost overruns and supply chain challenges during the scale-up phase. Toyota's involvement adds experience, but manufacturing complexity can still derail timelines.

If Joby misses its targets, investor optimism could fade quickly.

3. The path to profitability is long

Even after certification, Joby faces a significant challenge in turning its concept into a sustainable business. The company's model depends on owning and operating its own air taxi network -- a capital-intensive strategy that requires aircraft production, pilot training, maintenance, and vertiport access. Each of these adds costs before a single passenger takes off.

Joby's planned acquisition of Blade Air Mobility's passenger business should speed up its market entry. The deal gives Joby access to terminals, customers, and existing routes in New York and Europe. But it also adds short-term expenses and operational complexity, especially as Joby integrates new systems and staff.

Meanwhile, competition is intensifying. Archer Aviation and other start-ups are targeting similar launch timelines and customers. If multiple eVTOL companies debut around 2026, early pricing power could be limited, stretching the time it takes for Joby to reach breakeven.

The company's future success depends on scaling efficiently while maintaining safety and reliability. That's no small feat, even with strong partners and funding.

What is means for investors

Joby Aviation leads the eVTOL field in regulatory progress, partnerships, and manufacturing readiness. It's closer to commercialization than most peers, and that gives it a legitimate first-mover advantage. Still, investors shouldn't mistake technological progress for financial stability. Joby remains pre-revenue, burns hundreds of millions of dollars per year, and faces both regulatory and execution risks.

The technology is promising -- but the stock remains speculative. For long-term investors, Joby could eventually emerge as a leader in urban air mobility. Until then, it's worth keeping on your watch list while waiting for evidence that this bold vision can turn into a viable business.

Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.