JOBY's $250M eVTOL Deal Signals Asian Expansion: More Growth Ahead?

Joby Aviation JOBY recently announced the signing of a letter of intent with Alatau Advance Air Group (“AAAG”) for the potential sale of its electric vertical takeoff and landing (eVTOL) aircraft and related services valued at up to $250 million. The partnership aims to introduce cutting-edge air taxi services in Kazakhstan, marking a significant step in advancing sustainable aviation across Central Asia.

The agreement, which includes pre-delivery payments, is reinforced by a memorandum of understanding between Joby and the Ministry of Artificial Intelligence and Digital Development of Kazakhstan. Under this MoU, the Ministry has pledged to support the development of Advanced Air Mobility (“AAM”) within the country by establishing the necessary regulatory framework and infrastructure to enable the seamless operation of air taxis.

AAAG plays a crucial role in this initiative as part of its broader efforts to develop Alatau City, an ambitious 340-square-mile urban development project designed to serve as a modern, international hub in Central Asia. The city is expected to become one of the earliest markets to launch air taxis in the region, positioning Kazakhstan at the forefront of next-generation urban transportation solutions.

Moreover, Joby and AAAG will also explore opportunities for industrial collaboration, including the sourcing of key materials — such as titanium and rare earth metals — from Kazakhstan to support the production of Joby’s aircraft. This element of the agreement underscores Kazakhstan’s strategic importance as a supplier of critical resources and its growing role in the global aerospace supply chain.

For Joby, this partnership provides a gateway to expand its international footprint and bring the zero-emission, quiet and efficient eVTOL technology to new markets. The deal complements Joby’s global expansion strategy as it continues to collaborate with governments and private entities worldwide to make air taxis a reality.

Through this strategic alignment with AAAG and the Kazakh government, Joby is positioned to play a key role in transforming urban and regional mobility in Central Asia, offering faster, cleaner and more efficient alternatives to traditional ground transport.

Taking a Look at the Other eVTOL Players

Archer Aviation ACHR, another prominent eVTOL aircraft developer, has continued to make significant progress in this space through strategic partnerships, key milestones and expansion initiatives. In September 2025, the company revealed that its Midnight aircraft successfully completed the highest altitude flight to date, reaching altitudes of 7,000 feet. These milestone achievements should pave the way to the Midnight aircraft’s accomplishment of FAA certification in the United States, which is anticipated soon.

In August, the company accelerated its defense program with two strategic acquisitions that brought in advanced technologies and expertise, strengthening its position to meet growing demand from government and defense customers. In July, the company began test flights in Abu Dhabi, a key step toward building its presence in the Middle East and moving closer to commercial launch in the region.

Eve Holding EVEX, based in Brazil and spun off from aerospace leader Embraer, is capitalizing on its parent company’s deep aerospace expertise. The company has conducted extensive testing of various components and systems for its eVTOL aircraft, with flight testing expected to begin soon. 

Eve Holdings’ expanding backlog of Letters of Intent, including the recent agreement with Future Flight Global for up to 54 eVTOL aircraft, demonstrates growing global interest in its technology and products. As the company moves closer to achieving certification, this solid pipeline enhances its growth prospects and reinforces the potential for future revenue generation.

JOBY’s Price Performance, Valuation & Estimates

Shares of JOBY have surged in triple digits in a year, easily outperforming its industry.

1-Year Price Comparison

From a valuation perspective, Joby is trading at a premium compared with the industry average. In terms of price-to-book value, JOBY is trading at 15.61X, higher than the industry’s average of 3.48X.

The Zacks Consensus Estimate for JOBY’s third-quarter, fourth-quarter, full-year 2025 and 2026 losses has widened over the past 60 days.

JOBY’s Zacks Rank

JOBY currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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