Joby’s Twin Strategic Deals: Is the eVTOL Stock's Price Now Out of Reach?

Redefining Aviation

Electric vertical takeoff and landing (eVTOL) aircraft pioneer Joby Aviation (NYSE:JOBY) is making waves with two transformative deals that signal its ambition to dominate both commercial and military aviation. 

Yesterday, Joby announced it is acquiring Blade Air Mobility’s (NASDAQ:BLDE) passenger business for up to $125 million, gaining access to Blade’s established infrastructure, customer base, and operational expertise in urban air mobility. 

Days earlier, Joby partnered with defense contractor L3Harris Technologies (NYSE:LHX) to develop a gas turbine hybrid VTOL aircraft for military applications, with flight tests slated for the fall and operational demonstrations planned for 2026. 

These moves position Joby to bridge urban air taxi services with defense applications, leveraging its S4 platform to redefine low-altitude aviation. But with its stock already up over 150% in 2025, investors are left wondering if the runway for gains is still open.

Blade Acquisition: A Launchpad for Commercial Growth

The $125 million acquisition of Blade’s passenger business, which includes $35 million tied to performance milestones, is a strategic coup for Joby. Blade, known for its helicopter taxi services in New York and southern Europe, served over 50,000 passengers in 2024 across 12 urban terminals, including key locations like JFK Airport.

By acquiring Blade’s routes, terminals, and customer-facing software — partly developed by a team Joby acquired from Uber Technologies (NYSE:UBER) own eVTOL service, Uber Elevate — Joby gains a ready-made platform to transition its eVTOL air taxis into commercial service. 

CEO JoeBen Bevirt called this a “launchpad” to scale operations, particularly as Joby nears FAA certification and expects to begin critical flight testing in early 2026. 

The deal allows Joby to integrate its electric air taxis into Blade’s network, phasing out helicopters for cleaner, quieter eVTOLs, potentially unlocking new urban routes. This acquisition not only accelerates Joby’s commercial rollout but also provides revenue-generating infrastructure while it awaits regulatory approval.

L3Harris Partnership: Expanding into Defense

Joby’s collaboration with L3Harris marks a bold pivot into military applications, building on a decade of work with the Department of Defense. The partnership focuses on a gas turbine hybrid VTOL based on Joby’s S4 platform, designed for low-altitude missions like surveillance, reconnaissance, and contested logistics. 

Unlike Joby’s all-electric commercial air taxis, this hybrid model offers extended range and optional piloting, blending crewed and autonomous capabilities. L3Harris brings expertise in sensors, communications, and autonomy, complementing Joby’s aircraft design and manufacturing strengths. 

The companies plan to start flight testing this fall, with demonstrations for government exercises in 2026. Joby’s prior achievements, including a 561-mile hybrid flight in June 2024 and its acquisition of Xwing’s autonomy division, bolster its credibility in this space. 

This deal positions Joby to tap into the growing demand for advanced, autonomous defense aircraft, diversifying its revenue streams beyond urban air mobility.

Implications for Joby’s Future

These developments cement Joby’s role as a leader in the advanced air mobility (AAM) market, projected to reach $114.5 billion by 2034 with a 24.8% compound annual growth rate. 

The Blade acquisition provides immediate access to a proven urban air mobility network, reducing infrastructure costs and accelerating market entry. Meanwhile, the L3Harris partnership opens doors to lucrative defense contracts, leveraging Joby’s dual-purpose technology to meet evolving military needs. 

However, challenges remain: FAA certification is a complex hurdle, and Joby’s CEO recently said the path forward is not as smooth as previously believed. Also, infrastructure scalability could limit growth. 

Competition from Archer Aviation (NYSE:ACHR) and Beta Technologies, also pursuing defense applications, adds pressure. Joby’s stock surge reflects market enthusiasm, but its capital-intensive projects and reliance on third-party suppliers pose risks. Investors must weigh these factors against Joby’s first-mover advantage and strategic partnerships.

Key Takeaway

With Joby’s stock up over 150% so far this year, the question of whether it’s too late to invest looms large. The Blade acquisition and L3Harris partnership signal strong growth potential, diversifying Joby’s portfolio across commercial and defense sectors. 

However, the stock’s sharp rise suggests much of the optimism is already priced in. JOBY trades at extraordinary valuations. Since Joby is currently pre-revenue, traditional metrics like P/E or P/S don’t apply, but the stock trades at over 18 times its book value. Wall Street also has a consensus price target of just $8.75 per share (before the latest deals), implying 57% downside.

Risks like regulatory delays, high capital needs, and competition could temper returns. For long-term investors, Joby’s leadership in eVTOL and its expanding market opportunities make it a stock to watch, but short-term volatility may offer better price points. I’d wait for a dip, though a good argument can be made to take a small position to have skin in the game while still betting on the future of urban air mobility in redefining aviation. 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.