Will 2026 Be the Year Joby Aviation Takes Off?

Joby Aviation (NYSE: JOBY) is a leading developer of flying taxis, more formally known as electric vertical take-off and landing (eVTOL) aircraft. These vehicles could potentially change the nature of transportation, allowing people to fly high above the city and skip ahead of the traffic grid below.

Joby has big plans for this year, but it also has some work to do before it becomes commercially viable. Here's what investors need to know.

Joby is making progress in the Dubai and U.S. markets

Joby Aviation is working closely with regulators in the United Arab Emirates (UAE) and plans to launch its air taxi services in the region as soon as this year. The eVTOL developer has a six-year exclusive partnership with the Road and Transport Authority to build its first vertiport at Dubai International Airport.

The vertiport was roughly 60% complete as of November, and the company expects construction to be completed sometime in the first quarter of this year. Three additional landing sites will be placed at major local landmarks, including the Dubai Mall, Atlantis the Royal, and The American University of Dubai.

The company has received permission to fly from local civil aviation authorities and has conducted demonstration flights at the Dubai Airshow. Joby plans to start its first passenger flights in Dubai this year, demonstrating its ability to offer air taxi services and gauging demand for it.

Image source: Joby Aviation.

In the U.S., Joby has entered the final stage of its certification process known as Type Inspection Authorization. Joby is part of the White House's eVTOL Integration Pilot Program (eIPP), which enables it to test its mature aircraft in select U.S. markets before receiving full certification. The company believes that operations under this program could begin as early as mid-2026.

A high-risk, high-reward bet on the future

Joby's first flights would be a huge step forward for the upstart eVTOL company. However, getting there is expensive, and it needs funding as it grows its production capabilities alongside its commercial operations. That's why it announced it would sell 52 million shares at an offering price of $11.35 per share on Jan. 29. This helps Joby raise the money needed to expand its production capabilities as it scales up, but it is dilutive for current shareholders.

As with many pre-revenue, pre-operational start-ups, it will take time. Delays in its commercial launch or production setbacks could negatively impact the stock. If you're optimistic about the future of eVTOLs, Joby is a leading company to buy, but understand it will be a volatile ride, so don't risk more than you're willing to lose.

Courtney Carlsen has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.