Joby Aviation stock extends rally after fresh $100 million investment

By Ciara Linnane and Claudia Assis

Joby Aviation Inc.'s stock jumped more than 12% on Thursday, looking at a rally of more than 60% in the week, after the maker of electric air taxis received a $100 million investment from a South Korean wireless telecommunications company.

The news comes a day after Joby shares rallied more than 40% following a key approval for test flights of Joby's first electric vertical takeoff and landing, or eVTOL, aircraft.

SK Telecom Co. Ltd.'s (017670.SE) investment expands the partnership between the two companies and "paves the way for Joby to participate alongside SKT in Korea's 'K-UAM Grand Challenge,'" Joby said in a statement.

South Korea has set a goal of commercializing urban air mobility by 2025, and the challenge, supported by the Korea's Ministry of Land, Infrastructure and Transport, is designed to foster the adoption of air taxis in Korea, Joby said.

"We're grateful for SKT's commitment to Joby and look forward to working with them as we develop a transformational air taxi service for Korea," Joby founder and Chief Executive JoeBen Bevirt said.

Bevirt founded California-based Joby nearly 15 years ago. Joby became public in August 2021 after a merger with a blank-check company.

The company claims that its aircraft will have up to 150 miles of range, and, with its ability to take off and land vertically, "will change the way we move while reducing the acoustic and climate footprint of flight."

Joby has inked partnerships with Toyota Motor Corp. (7203.TO), its largest external shareholder, Delta Air Lines Inc. (DAL) and Uber Technologies Inc. (UBER)

Toyota has invested around $400 million, and the companies recently signed a long-term agreement for the supply of powertrains and components.

Proponents say that eVOTL aircraft are quieter and safer to operate than internal-combustion-engine helicopters. Joby plans to launch commercial operations in 2025.

The stock has nearly tripled so far this year, compared with an advance of about 14% for the S&P 500 index.

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-Ciara Linnane

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06-29-23 1246ET

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