10-K: Joby Aviation's 2024 10-K Filing: Progress Towards Certification and Manufacturing Scale-Up

Joby Aviation's 2024 10-K filing highlights progress in aircraft certification, manufacturing capabilities, and strategic partnerships as it targets initial passenger operations in 2025 or 2026.

Summary

• Joby Aviation is developing an all-electric vertical take-off and landing (eVTOL) air taxi for urban aerial ridesharing.
• The company is targeting initial passenger operations in 2025 or 2026.
• Joby is in the process of certifying its aircraft with the FAA and is working with regulators in other countries.
• The company plans to manufacture, own, and operate its aircraft, building a vertically integrated transportation company.
• Joby is preparing for commercial passenger service by forming relationships with partners such as Toyota, Uber, and Delta Air Lines.
• As of February 24, 2025, Joby had 787,816,925 shares of common stock outstanding.
• The aggregate market value of voting and non-voting common equity held by non-affiliates on June 30, 2024, was approximately $3.03 billion.
• The company incurred net losses of $608.0 million in 2024, $513.1 million in 2023 and $258.0 million in 2022.
• As of December 31, 2024, Joby had approximately $817.6 million of federal and $156.2 million of state net operating loss carryforwards (NOLs).
• As of January 31, 2025, Joby had 2,029 employees.

Sentiment

Score: 6

Explanation: The document presents a mixed sentiment. While there's progress in certification and partnerships, the increasing net losses and the need for additional capital raise concerns.

Positives

• Joby has made significant progress in the FAA type certification process, completing or substantially completing three of five stages.
• The company has a multi-year relationship with the U.S. Air Force, providing opportunities to understand operational capabilities and maintenance profiles.
• Joby has a strong intellectual property portfolio with over 270 issued or allowed patents and over 215 pending patent applications.
• The company has established strategic relationships with key partners, including Toyota, Uber, and Delta Air Lines.
• Joby is expanding its manufacturing capabilities, including a new building at its Marina site and a planned high-rate production facility in Dayton, Ohio.
• The company has a code of ethics that applies to its executive officers, directors and employees.

Negatives

• Joby has incurred significant losses since inception and expects to incur losses in the future.
• The company will need additional capital in the future, including to build high-volume manufacturing and develop a vertiport network.
• The Toyota Investment is subject to closing conditions, including conditions beyond Joby's control, and no assurance can be given that closing will take place on the timeline currently anticipated or at all.
• The market for UAM has not been established with precision, is still emerging and may not achieve the growth potential Joby expects or may grow more slowly than expected.
• Joby may face delays in launching its commercial service.
• Joby will initially rely on a single type of aircraft to support its commercial UAM business, which makes it vulnerable to design defects or mechanical problems.
• The U.S. government may modify or terminate one or more of Joby's existing contracts.

Risks

• The company may be unable to obtain relevant regulatory approvals for the commercialization of its aircraft or operation of its mobility service.
• Regulatory authorities may disagree with Joby's view that integrating its service into the National Airspace System is possible without changes to existing regulations and procedures.
• Changes in government regulation could increase Joby's operating costs or extend its certification timeline.
• The market for UAM has not been established with precision, is still emerging and may not achieve the growth potential Joby expects or may grow more slowly than expected.
• There may be reluctance by consumers to adopt this new form of mobility, or unwillingness to pay Joby's projected prices.
• Joby may be unable to reduce end-user pricing at rates sufficient to drive expected growth for its service.
• Joby's competitors may commercialize their technology before Joby, or Joby may not be able to fully capture the first mover advantage that it anticipates.
• If Joby is unable to integrate its service with ground transportation services it may limit customer adoption and harm its business.
• Crashes, accidents or incidents of eVTOL and other aircraft could have a material adverse effect on Joby's business, financial condition, and results of operations.
• Joby depends on suppliers and service partners for raw materials, parts and components.
• Joby's aircraft may require maintenance at frequencies or at costs which are unexpected.
• The U.S. government may modify or terminate one or more of Joby's existing contracts.
• Joby may be unable to grow its relationship with the U.S. government and the Department of Defense.
• Joby has incurred significant losses since inception, expects to incur losses in the future, and may not be able to achieve or maintain profitability.
• Joby will need additional capital in the future, including to build high-volume manufacturing, and to develop a vertiport network to support a high-volume service.
• The Toyota Investment is subject to closing conditions, including conditions beyond Joby's control, and no assurance can be given that closing will take place on the timeline currently anticipated or at all.
• Joby has broad discretion in how it uses its assets, and it may not use them effectively.
• Joby may be unable to protect its intellectual property rights from unauthorized use by third parties.
• If conflicts arise between Joby and its strategic partners, its business could be adversely affected, or these parties may act in a manner adverse to Joby.
• Joby may invest significant resources in developing new offerings and exploring the application of its proprietary technologies for other uses and those opportunities may never materialize.
• Any material disruption in Joby's information systems could adversely affect its business.
• If Joby or its third-party service providers experience a security breach, or if unauthorized parties otherwise obtain access to its customers' data, its reputation may be harmed, demand for services may be reduced, and Joby may incur significant liabilities.
• Joby's intended initial operations are concentrated in a small number of metropolitan areas and airports which makes its business particularly susceptible to natural disasters, outbreaks and pandemics, growth constraints, economic, social, weather, and regulatory conditions or other circumstances affecting these metropolitan areas.
• Joby currently has subsidiaries located outside of the United States and plans for international operations in the future, which could subject it to political, operational and regulatory challenges.
• Joby is subject to risks arising from natural disasters and severe weather conditions and risks associated with climate change, including the potential increased impacts of severe weather events on its operations and infrastructure.
• Joby is subject to many hazards and operational risks that can disrupt its business, including interruptions or disruptions in service at its facilities, for which it may not be able to secure adequate insurance policies, or secure insurance policies at reasonable prices.
• Joby is dependent on its senior management team and other highly skilled personnel, including pilots and mechanics, and it may not be successful in attracting or retaining these personnel.
• Joby's business may be adversely affected by union activities.
• The price of Joby's common stock has been and may continue to be volatile.
• Joby does not intend to pay cash dividends for the foreseeable future.
• If analysts do not publish research about Joby's business or if they publish inaccurate or unfavorable research, its stock price and trading volume could decline.
• Joby may be subject to securities litigation, activist investors and short-selling campaigns, which are expensive and could divert management attention.
• Future resales of common stock may cause the market price of Joby's securities to drop significantly.
• If Joby is deemed to be an investment company under the Investment Company Act of 1940, its results of operations could be harmed.

Future Outlook

Joby is targeting initial passenger operations in 2025 or 2026 and expects to steadily drive down end-user pricing in the years following commercial launch.

Management Comments

• We believe this vertically-integrated business model will generate the greatest economic returns over time, while providing us with end-to-end control over the customer experience to optimize for customer safety, comfort and value.

Industry Context

The document highlights the growing urban air mobility market, citing a Morgan Stanley report projecting a $1 trillion total addressable market globally by 2040. It also acknowledges competition from ground-based mobility solutions, other eVTOL developers, and incumbent aircraft charter services.

Comparison to Industry Standards

• The document references a 2021 Morgan Stanley report projecting the urban air mobility sector's total addressable market to reach $1 trillion globally by 2040.
• The document states that Joby's aircraft demonstrates energy efficiency comparable to best-in-class electric ground vehicles.
• The document states that Joby's aircraft exhibits a noise profile in the range of 65 dBA during takeoff and landing, roughly the volume of a normal speaking voice.

Management Changes

Corporate Governance

Legal Proceedings

• The company is subject to a variety of claims that arise from time to time in the ordinary course of its business.

Related Party Transactions

• The company's Chief Executive Officer and founder has ownership interests in certain vendors providing services to the company.
• Toyota Motor Corporation is a beneficial owner of more than 10% of the voting interests of the company and has the right to designate a director for election to the company's Board of Directors.
• Toyota is developing prototypes and supplying parts and materials for some of the company's manufactured subassembly components.

Stakeholder Impact

• Shareholders: The company's stock price may be volatile, and future resales of common stock may cause the market price of its securities to drop significantly.
• Employees: The company is dependent on its senior management team and other highly skilled personnel, including pilots and mechanics, and it may not be successful in attracting or retaining these personnel.
• Customers: The company's service will depend, in part, on third-party ground operators to take customers from their origin to their departure vertiport and from their arrival vertiport to their ultimate destination.

Next Steps

• Continue working towards FAA certification and production certification.
• Expand manufacturing capabilities.
• Develop vertiport infrastructure.
• Continue to develop strategic partnerships.
• Continue to invest in research and development.

Key Dates