SANTA CRUZ, Calif. & DHAHRAN, Saudi Arabia - Joby Aviation , Inc. (NYSE:JOBY), an all-electric air taxi developer, has signed a Memorandum of Understanding (MoU) with Mukamalah, a subsidiary of Saudi Aramco (TADAWUL:2222), aiming to bring its eVTOL (electric Vertical Take-Off and Landing) aircraft to Saudi Arabia. This partnership is expected to lead to the direct sale of Joby aircraft for use in Mukamalah's fleet.
The MoU was signed today at the Future Aviation Forum in Riyadh by Joby Founder and CEO JoeBen Bevirt and Captain Khalid Al Natour, CEO of Mukamalah Aviation. The agreement involves collaboration with Saudi aviation stakeholders, including The Saudi General Authority of Civil Aviation (GACA), to facilitate Joby's entry into the Saudi market. GACA expressed enthusiasm for the initiative, which aligns with the Kingdom's sustainability objectives and net-zero emissions goal by 2060.
Mukamalah Aviation Company, which operates the world's largest fleet of corporate aircraft, currently manages 55 aircraft serving 13 airports in Saudi Arabia and oversees more than 300 helipads. The introduction of Joby's emissions-free aircraft is part of Mukamalah's commitment to sustainability and aligns with the Kingdom's Vision 2030.
Joby's eVTOL is designed to carry a pilot and four passengers at speeds up to 200 mph, providing a quiet and emissions-free alternative to traditional helicopters. The aircraft's recent milestones include its first flight in New York City in November 2023 and the commencement of production in California in June 2023, with the first delivery to the U.S. Department of Defense in September 2023.
The collaboration with Mukamalah represents one aspect of Joby's commercialization strategy, which also includes direct operations in the U.S. and United Arab Emirates, and partnered operations in other markets.
Joby Aviation has raised over $2 billion in funding, with investments from major companies such as Toyota (NYSE:TM) and Delta Air Lines (NYSE:DAL).
This news is based on a press release statement.
InvestingPro Insights
As Joby Aviation (NYSE:JOBY) forges ahead with its international expansion strategy, the financial metrics and analyst insights provided by InvestingPro paint a comprehensive picture of the company's current market stance. With a market capitalization of $3.51 billion, Joby stands out as a significant player in the electric Vertical Take-Off and Landing (eVTOL) industry, despite the fact that it is not yet profitable, with a negative P/E ratio of -7.81 for the last twelve months as of Q1 2024.
One of the key InvestingPro Tips for Joby Aviation is the company's strong gross profit margin, which was reported at an impressive 79.66% for the same period. This indicates that Joby is able to maintain a high level of efficiency in its production processes, which could be a positive sign for future profitability as sales grow. This aligns with the analysts' anticipation of sales growth in the current year, suggesting that the market is optimistic about Joby's revenue trajectory.
However, the stock price has experienced significant volatility, with an 18.45% decline over the last three months, reflecting the inherent risks associated with the emerging eVTOL market. Despite this, Joby holds more cash than debt on its balance sheet, which is an InvestingPro Tip that highlights the company's financial resilience and ability to fund its operations and growth initiatives.
For investors looking to delve deeper into Joby Aviation's financials and future prospects, InvestingPro offers additional tips and insights. There are currently 12 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/JOBY. To enhance your investing strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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