Flying-taxi service Joby soars 18% on Delta Air Lines' $60M investment

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• Air mobility firm Joby Aviation (NYSE:JOBY) shares surged 18% on Tuesday morning after it received a $60M equity investment from and forged a multi-year partnership with Delta Air Lines (NYSE:DAL).
• The partnership will offer sustainable home-to-airport transportation service to Delta (DAL) customers, beginning in New York and Los Angeles.
• The companies will work together to integrate a Joby-operated service into Delta’s (DAL) customer-facing channels, enabling passengers from New York and Los Angeles to reserve a seat for short-range journeys to and from city airports when booking Delta travel.
• The partnership will be mutually exclusive across the U.S. and U.K. for five years following commercial launch, with the potential to extend that period.
• The airline has made an upfront equity investment of $60M in Joby (JOBY), with the opportunity to expand the total investment up to $200M as the partners achieve substantive milestones on the development and delivery of the service.

Comments

[sts66]

$60M investment into a stock with a $2.52B MC? A pittance!

[pat45]

$XPEV just demonstrated their flying taxi/cars in Dubai today

[charly333]

JOBY likes to raise $1B and Delta will invest $60M. Delta looks a bit shy.

Anyway this EVTOL sector is all about selling shares. Sell it to investors, sell it to potential customers. Avoid this business imo.

[Wellington999]

@charly333 yes...my feeling too, $60 mil is peanuts these days but the fact that Delta chose them and not a competitor is encouraging and will cause some temporary short covering

[Tim Dunn]

given that AAL and UAL had already made investments in other urban air mobility companies, DAL had to do something in order to remain competitive. I think JOBY will deliver but as is noted in the article, how close they can park to DAL's terminals will make a big difference in how well accepted they are used.

[sts66]

@Tim Dunn Where does which article say where they park near terminals is a problem? I know it's a serious problem, but there's nothing in the link above that mentions it.

[Tim Dunn]

@sts66
other news sources that covered the story carried DAL's CEO's statement that UAM will not reach their full potential at airports until they can co-locate with their linked parties.

[sts66]

@Tim Dunn UAM? Who is that? I don't know how you solve the air traffic control problems with eVTOLs landing and taking off from airports - restricted air space issues.

[BTR2RSK]

Nice potential.