The future of urban air mobility isn't a winner-take-all proposition -- it's an emerging market with room for multiple innovators to succeed. While I've frequently discussed my bullish position on Archer Aviation (ACHR 0.74%) as a top small-cap growth opportunity, my portfolio's exposure to electric vertical takeoff and landing (eVTOL) technology extends beyond a single company.

Joby Aviation (JOBY 1.88%) represents my second strategic position in this transformative technology space. This isn't about diversification for its own sake -- it's a deliberate investment in what I consider another industry front-runner with a compelling growth trajectory.

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What sets Joby apart is its powerful ecosystem of partners, including manufacturing powerhouse Toyota and commercial aviation giant Delta Air Lines. These relationships provide Joby with unique advantages in production expertise and mainstream market entry strategies that strengthen its competitive position.

The eVTOL market remains in its formative stages, with the race toward FAA certification and commercial operations intensifying. Both Archer and Joby have secured substantial capital, forged strategic partnerships, and demonstrated meaningful technical progress -- critical milestones that separate serious contenders from speculative ventures.

Here's why Joby Aviation commands a spot in my portfolio as a high-conviction investment in the revolutionary future of air transportation.

Certification progress: methodically moving forward

Joby is a certification frontrunner, achieving record progress with the FAA in Q1 2025. The company has now completed 43% of the FAA's fourth certification stage, while Joby's internal portion stands at 62% complete. This methodical approach to airworthiness validation demonstrates the company's rigorous engineering discipline and regulatory execution capability.

The certification strategy leverages thousands of testing hours in Joby's Integrated Test Lab, a ground-based facility replicating all major aircraft systems. This approach provides hardware-in-the-loop test capabilities that support for-credit certification activities, significantly reducing resource requirements while accelerating the validation timeline. With the first three certification stages either complete or nearly so, Joby's path to commercial operations grows increasingly tangible.

Technical milestones: first to achieve an inhabited transition flight

In April 2025, Joby reached a landmark achievement by completing successful pilot-on-board transition flights, moving from vertical takeoff to wing-borne cruise flight and back again. This makes Joby the first company to routinely perform inhabited testing of an electric air taxi through its complete flight envelope, a critical step toward commercial operations.

Furthermore, the company's comprehensive testing program at Edwards Air Force Base validates the multiple redundancies engineered into the aircraft. During simulated motor-out and battery-out scenarios, the aircraft maintained controlled flight and vertical landing capabilities with no changes to pilot procedures, showcasing safety advantages over traditional helicopters.

Manufacturing infrastructure: production scaling underway

Joby's manufacturing capabilities continue advancing with its fifth production-line aircraft now powered up and undergoing final functional checks before joining the flight test program. This will expand their active test fleet to six aircraft, enabling a flight cadence of up to eight flights daily across multiple locations -- a crucial operational metric for certification and commercial launch preparations.

The company's expanded manufacturing facility in Marina, CA, is nearing completion and will be handed over to the Joby team in Jun. 2025. Supported by a CalCompetes grant from California's Governor's Office, this new building more than doubles Joby's manufacturing footprint. Beyond production capacity, the facility will house expanded pilot training capabilities, flight simulation centers, and aircraft maintenance facilities. These are critical infrastructure components for scaling commercial operations beyond initial launch markets.

Strategic partnerships: market entry pathways secured

Joby recently announced a partnership with Virgin Atlantic to launch its air taxi service in the U.K. This collaboration builds upon Joby's existing relationship with Delta Air Lines (which owns 49% of Virgin Atlantic) and creates a clear market entry strategy for one of the world's most important aviation markets. Virgin will support Joby's U.K. efforts through customer marketing, regulatory engagement, and infrastructure development at key hubs including Heathrow and Manchester Airport.

In Dubai, construction of the vertiport at Dubai International Airport continues advancing on schedule, with Joby on track to begin pilot-onboard testing in the Emirate by midyear. These initial launch markets represent strategic entry points that allow Joby to demonstrate commercial operations while working toward broader deployment. By establishing operations in multiple regions with different regulatory frameworks, Joby creates diverse pathways to revenue generation while minimizing dependence on any single market's regulatory timeline.

Financial position: substantial runway with strategic backing

Joby concluded Q1 2025 with $813 million in cash and short-term investments, providing substantial runway for its certification and commercial launch initiatives. The company's cash utilization remains disciplined, with full-year 2025 expenditures projected between $500 million to $540 million, a conservative burn rate given the capital-intensive final stages of aircraft certification.

Toyota's additional $500 million commitment, announced in Oct. 2024, further strengthens Joby's financial foundation. With the first $250 million tranche finalized and expected to appear in Q2 financial statements, the company has secured backing from one of the world's premier manufacturing organizations.

Investment thesis: long-term conviction justified

My investment in Joby Aviation is built on quantifiable progress rather than speculative potential. The company's Q1 2025 results validate its methodical execution across technical, regulatory, manufacturing, and commercial fronts. With 43% of the crucial fourth FAA certification stage complete and pioneering achievements like inhabited transition flights now routine, Joby demonstrates tangible progress toward commercial operations.

The robust partnership ecosystem -- featuring Toyota's manufacturing expertise, Delta's aviation network, and now Virgin Atlantic's U.K. market access -- provides Joby with unique advantages in scaling both production and market presence. Combined with $813 million in current liquidity plus Toyota's additional $500 million commitment, Joby has the financial runway to navigate the final stages of certification and commercial launch without near-term capital concerns.

What's the bottom line? Joby isn't just participating in the future of transportation -- it's actively creating it. As one of the few companies with the technical capability, regulatory progress, and financial resources to bring air taxis from concept to commercial reality, Joby represents a rare opportunity to invest in the ground floor of a transportation revolution that could reshape urban mobility for generations.