Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

Toyota looks like a mature, large-scale business with strong revenue and sustainable profitability, but the market is no longer giving it a cheap valuation across all key metrics. P/E and P/B are below the industry median, which supports the case for relative undervaluation; however, P/FCF is noticeably above the industry level, and P/S is also above the median, so in terms of cash flow and revenue the stock does not look especially cheap. Profitability is generally acceptable: net margin and operating margin are above industry benchmarks, but ROE, ROA, ROI, and return on tangible equity are noticeably weaker than the median, which limits the argument for a higher multiple. The quality trend is not ideal: operating profit, EBITDA, gross margin, and net income have declined from stronger levels in previous periods, indicating pressure on efficiency. At the same time, revenue remains high and has generally grown compared with earlier years, confirming the scale and resilience of the business. The balance sheet looks manageable: debt/equity is only slightly above the median, quick ratio is around 1, current ratio is moderate, but cash on hand has declined from higher levels last year, reducing the safety buffer. Long-term debt is gradually increasing, which adds caution to the valuation, especially against the backdrop of a weaker cash position. Dividend yield in the latest period looks weaker than in previous years, so the dividend factor does not provide strong support for a re-rating. Overall, the fundamentals remain solid, but not strong enough to justify an aggressive upward revision. Given the mixed profitability picture, the expensive P/FCF, and the weakening of some operating metrics, a moderate conservative downward adjustment looks more justified than raising the target price.

PLTM-12.26

Toyota Motor Corporation

Слабый индекс, незначительно упал. Быки продолжают терять уверенность.

Weak index, slightly down. Bulls continue to lose confidence.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Toyota remains profitable and large-scale, but weaker in ROE/ROA and P/FCF, while declining profit and cash on hand limit the potential for revaluation.

Key Points
Innovation is sewn into the fabric of Nvidia’s company culture.
Nvidia is generating so much cash that it can afford to aggressively invest in next-generation computing platforms and return capital to shareholders.
Nvidia's AI roadmap extends far beyond data center compute.
Nvidia's (NASDAQ: NVDA) Board of Directors authorized a $150 billon increase to its share repurchase program, bringing the total to $235 billion. The announcement was the largest single stock buyback authorization in U.S. corporate history.
For context, Toyota Motor -- which sells more cars than any other manufacturer in the world -- has a market cap of $223 billion.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here's why Nvidia's buyback program is great news for investors, and why the bigger story is what Nvidia is doing with the rest of its cash.
High margin revenue growth fuels free cash flow
Nvidia's free cash flow (FCF) has exploded in recent years due to its rapid revenue growth and high margins. Nvidia returned 60% of FCF to investors through buybacks and dividends in the first half of fiscal 2027, and has a long-term target of returning at least 50% of FCF.
Nvidia is converting around 75 cents of every dollar in sales into gross profit, 64 cents into bottom-line after-tax profit, and around 42 cents into FCF. Nvidia's growth and high margins are partly due to insatiable demand for artificial intelligence (AI) compute -- which is benefiting the broader semiconductor industry. But Nvidia also has a highly effective product development pipeline that has produced three new compute platforms in four years. These aren't marginal improvements either.
Its Grace Blackwell platform, announced in March 2024, was magnitudes better than Hopper, launched in March 2022. In January 2026, Nvidia announced its Vera Rubin platform. Compared to Blackwell, Rubin delivers a 90% reduction in inference costs and a 75% reduction in the number of graphics processing units (GPUs) needed for training.
Nvidia has been the poster child of the AI boom since OpenAI released ChatGPT to the public in November 2022. But it's what the company has developed since that should be getting more attention.
Nvidia began shipping Rubin in August and already expects it to account for 20% of data center revenue in the third quarter of fiscal 2027, which it will report in November. Demand for Rubin is so massive that Nvidia is guiding for 70% year-over-year revenue growth in fiscal 2028. Higher memory chip costs have yet to make a substantial dent in Nvidia's gross margins -- a testament to its pricing power.
Rubin's efficiency is not solely due to Nvidia's making a more powerful GPU. It's also because Rubin comes in a rack-scale offering that includes multiple chips and networking components, which Nvidia calls extreme co-design. This co-design allows Nvidia to control a larger share of the data center addressable market, and in turn, offers significant performance improvements for its customers that justify the high price tag. The Nvidia NVL72 is a plug-and-play offering for AI data centers that features seven new chip designs, including 72 Rubin GPUs and 36 Vera central processing units.
Innovating at the speed of light
Nvidia's record buyback authorization is a product of its impeccable profitability and sheer size. It is not, however, a sign that the company is transitioning into a stodgy, low-to-moderate growth company.
In his book The Nvidia Way, author Tae Kim discusses how Nvidia's Speed of Light concept was an integral reason the company was able to endure an intensely competitive landscape in its early years. The concept is rooted in pushing the limits of what Nvidia's talent and resources can deliver under expedited timelines, rather than using prior accomplishments or competitors' actions as a yardstick.
In the 1990s, other chip companies would operate on a one to two-year product development cycle, which left them vulnerable to riding a big hit only to see their market share erode if their next launch failed. Nvidia fell into the same trap and almost went bankrupt multiple times. Nvidia then condensed its product launches to six months as a way to keep cash flow coming and avoid taking its competitive moat for granted.
Nvidia CEO Jensen Huang embodies Nvidia's relentless work culture to this day. Nvidia could have easily ridden the coattails of Blackwell for longer and kept Rubin in its back pocket, but Nvidia doesn't behave like the world's most valuable company. It behaves like a company that doesn't take its industry-leading position for granted.
Nvidia also recognizes that its heavy reliance on a handful of hyperscale customers leaves it vulnerable to cyclical spending pullbacks. This is why evolving beyond one-off chip sales to rack-scale data center solutions that deliver the greatest cost efficiency for its customers is so important. On top of that, Nvidia is making compute more accessible and transferable to a non-hyperscale customer base by partnering with financial institutions to create an investable AI infrastructure asset class. Third-party capital will fund the build-out of AI infrastructure that can be sold to AI labs, AI start-ups, cloud providers, and enterprises seeking the flexibility to use varying levels of compute without the risks and capital commitments of building it themselves.
Nvidia remains a high-octane growth stock
A bloated buyback budget can sometimes indicate a company is out of good ideas and looking for ways to appease shareholders. But Nvidia's record authorization is simply a product of how profitable its business has become and of management's confidence in its roadmap to generate even higher FCF going forward as AI compute demand increases.
Nvidia's buyback announcement does not mean the company is taking its foot off the gas when it comes to AI innovation. Nvidia's culture still prioritizes organic growth over everything else. There's every reason to believe that will continue, given Nvidia's optimism about compute demand for agentic AI and physical AI, such as self-driving cars and robotics.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Nvidia Authorizes a Record $150 Billion in Stock Buybacks. The Real Prize Is Where the Rest of Its Cash Is Going.

Key Points
Public charging infrastructure is still the primary reason consumers aren't adopting EVs.
Tesla's Accordion lowers costs and can be placed in urban and retail lots that were previously difficult.
BYD is rapidly catching up with Tesla's number of charging points globally.
Here's the bad news first: public charging infrastructure is still the top reason consumers avoid purchasing electric vehicles (EVs), per J.D. Power consumer data. Here's some of the good news: public sentiment of charging infrastructure availability is on the rise, and charging station failure rates are falling. Tesla (NASDAQ: TSLA) just showed off its first Accordion Supercharger, and it does a couple of things that could benefit the company and consumers. Let's take a look at Tesla's innovative solution to lower costs and improve availability, and how it compares to the progress its global rival BYD Co. is making.
A home run strategy?
Tesla recently showed a video of its first Accordion Supercharger in action, and it seems like a brilliant move for the EV maker. Essentially, a pre-assembled charging unit that ships 16 stalls on a single semi-truck will enable installations at 20% lower cost than a conventional charging site.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
As you likely assumed from the accordion name, the entire unit folds up, and, in addition to the installation cost savings, it commissions right away with no technician required. What's even better about this system is that it's designed to operate on sites where you can't utilize behind-the-curb installs, which require trenching, conduit, and permitting that isn't always convenient. Not only does Tesla's Accordion skip most of that effort, but it also opens up urban and retail lots that the EV maker couldn't build as easily before.
"Our goal is to pre-assemble all Superchargers in a factory," according to a post from Tesla's charging account. "If we can't install Superchargers behind a curb, we now have a pre-assembled solution for Superchargers between parking spaces".
If at first you don't succeed
This, of course, isn't Tesla's first shot at a similar system designed to speed up the process and lower costs. Rewind the clock to 2022, and Tesla boasted a full Supercharger station being built in only eight days, using a pre-fabricated system, and then in 2024, it cut that time down to four days from delivery to online, citing 15% deployment savings.
While many might have seen that as a successful step forward in engineering, innovation, and savings, it somehow only prompted CEO Elon Musk to fire the entire Supercharger team. Tesla's Supercharger build-out hasn't been as smooth in the years since. In fact, Tesla's Supercharger network had been growing at more than a 35% clip a year until the team was let go, and annual growth remains roughly half of what it was in 2024.
BYD is accelerating
Tesla's strategy here is a great one, and it's also much needed after its Supercharger build-out slowdown because global rival BYD Co. is installing its fast chargers at a quicker rate than any competitor. Exhibit 1: BYD installed 10,000 of its 1,500 kW "flash charging" stations in only five months, from this year's March launch to late August, covering more than 320 Chinese cities – it hopes to double that by the end of this year.
If you're doing the math that means with two charging points per flash charging station BYD will have built about 40,000 charging points this year alone, which is about half of Tesla's global stall count. Further, investors also have to consider that these BYD stations are about three times more powerful than Tesla's V4 cabinets that reach a peak 500 kW.
What it all means
Tesla ramping up its Supercharger deployment, hopefully with the launch of its Accordion, is a big deal because it's long been a competitive advantage that directly removes range anxiety and makes long-distance EV traveling more practical. It also helps drive industry adoption of the North American Charging Standard (NACS), expands charging fee revenue by adding access to competing vehicles, and can help secure government subsidies for public charging infrastructure expansion. Tesla and BYD will likely battle in many markets in the coming years as the latter stated its goal to become the No. 1 automotive seller by annual volume (overtaking Toyota at roughly 11.3 million vehicles) by 2031, and charging infrastructure will be one of the big battles. Tesla has the clear edge right now, but BYD is rapidly gaining on Tesla's charging network advantage.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $595,015!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,810!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,154!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 23, 2026.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.

Tesla Makes Brilliant Supercharger Move but BYD Is Closer in the Mirror Than It Appears

Key Points
Compared to earlier this decade and before, Tesla's revenue growth has slowed in the face of higher competition and macroeconomic pressure.
The business has a strong industry position thanks to its premium brand and scaled manufacturing capabilities.
Investors should realize that the valuation represents enormous success for Robotaxi and Optimus in the future.
In the past decade, Tesla (NASDAQ: TSLA) has taken the global automotive industry by storm. The business brought electric vehicles (EVs) to the mainstream. Positioned as a premium car brand, it proved that people did not have to sacrifice design in the name of sustainability.
While growth has slowed in recent years, Tesla's fundamental gains have still been notable over the long term. Not to mention, this is an extremely ambitious company working on cutting-edge projects.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors have profited immensely. The Magnificent Seven stock is currently 23% off its peak (as of Sept. 22). However, it has skyrocketed 2,660% in the past 10 years.
If you're thinking of buying Tesla, know these three things first.
Recent business performance
Through the first six months of 2026, Tesla's automotive revenue jumped 24%. This is an impressive figure, but it doesn't take away from slower growth trends. On a trailing 12-month basis, overall company sales were just 10% higher than they were exactly three years ago. Early shareholders who were compelled by a rapidly growing business are now dealing with a new reality.
Tesla's financial performance in recent years has been negatively affected by industry conditions. Competition is fierce these days. Domestic legacy car companies offer their own EVs, and foreign EV enterprises, particularly from China, have established dominant positions in the market. This makes it much harder for Tesla to stand out.
Moreover, macroeconomic forces haven't been the most accommodative. Consumers continue to deal with a higher-rate environment, while above-average inflation eats away at their purchasing power. This pressures households' ability to buy expensive new cars.
Does Tesla have a moat?
Investors can do well by choosing to allocate capital to businesses that possess economic moats. These types of companies have certain traits that increase the chances of durable success, while decreasing the probability of disruption.
Tesla's brand is arguably a key part of the discussion here. These EVs sit toward the luxury end of the market, commanding high prices. The Model Y has been the best-selling vehicle in the world for three straight years, supporting brand awareness and visibility. This success has occurred without running the usual advertising campaigns. Its popularity signals that consumers favor the design and high-tech functionality.
Another part of the moat might come from Tesla's manufacturing prowess. It is able to produce EVs at scale at lower costs than U.S. rivals. This helps to explain why the company has been consistently profitable since 2020, while domestic peers have lost massive amounts of money from their EV operations.
Looking ahead, interested investors must understand the importance of the brand and cost advantage to Tesla's prospects.
What the $1.2 trillion market cap represents
Tesla is one of the most valuable companies on Earth. Its market capitalization is $1.2 trillion. For comparison's sake, this business has a worth more than four times that of Toyota Motor, which is the automaker that sells the most vehicles each year worldwide.
Based on the earlier discussion about Tesla's current operations, any rational investor would conclude that the company is extremely overvalued. Shares are trading at an excessively high price-to-earnings ratio of 350. This clearly shows that the market is assigning Tesla an elevated valuation because of what the business could be at some unknown point in the future, not what it is today. This is a story stock.
That trillion-dollar market cap represents the investment community's belief that Tesla will be wildly successful in the future in two specific areas. These relate to projects that focus on real-world artificial intelligence. The first pertains to its Robotaxi platform, which has had a very slow launch after years of delays. Optimus is the other main contributor to Tesla's market cap, with the hope that humanoid robots will be sold to a variety of customers.
At the current valuation, investors are paying up to add a narrative to their portfolios. It's best to proceed with caution if you're seriously considering buying Tesla stock right now.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $595,015!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,810!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,154!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 23, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Things You Need to Know Before Buying Tesla

Key Points
May Mobility is looking to become the first pure-play autonomous ride-hailing investment option.
The autonomous segment of ride-hailing remains in the very early stages.
May Mobility is transitioning to an asset-light model, but that comes with pros and cons for investors.
Investors eager to buy into the futuristic vision of profitable driverless vehicles will get their chance soon. May Mobility is aiming to become the first U.S. publicly listed pure-play option for an autonomous ride-hailing technology company. It is poised to go public through a special purpose acquisition company (SPAC), merging with ACP Holdings Acquisition (NASDAQ: ACGC) that values the combined company at roughly $1.4 billion.
It's expected to operate as May Mobility. trading on the Nasdaq exchange under MAY. But before investors get too excited, let's pump the brakes and take a look at the details.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Opportunity knocks
It's easy for investors to get excited about the opportunity, but many might not be aware of the potential market size or growth prospects. The global robotaxi market is projected to reach about $415 billion by 2035, with the U.S. accounting for a roughly $48 billion slice of that pie. The fleet of U.S. commercial autonomous vehicles (AVs) is projected to expand from only about 4,000 vehicles currently to around 35,000 by 2030 -- or about 8% of the ride-sharing market.
A year ago this month, Bank of America projected that the long-term U.S. total addressable market (TAM) for AV ride-hailing is a trillion-dollar opportunity as companies such as May Mobility aim to replace the drivers that take roughly 70% of every fare. It's also important for investors to realize how early in the game this is: Alphabet's Waymo, with an estimated $350 million in annualized revenue, would represent only about 0.5% of U.S. ride-hailing bookings.
The opportunity is potentially lucrative, albeit still very early in the game. So, what makes May Mobility intriguing?
An asset-light transition
May Mobility is moving to an asset-light model. At the company's initial U.S. ride-hailing launch site, it estimates the costs for the safety driver; vehicles (financing, depreciation, insurance, maintenance); site operations (fuel/charging, depot operations, and staff); and remote vehicle supervisors, software maintenance, and field engineers. In this asset-heavy scenario, May Mobility's projections put its annual revenue per vehicle between $130,000 to $150,000, as it keeps all the revenue. But because it also incurs all the costs, it checks in with a negative gross margin per vehicle with a safety driver.
Under its asset-light model, which includes removing the safety driver, May Mobility transfers the vehicle costs as well as the site operating costs to a fleet operating partner, although it will still incur the costs for remote supervisors, field engineers, and software maintenance.
This scenario would come with a larger fleet size thanks to a fleet-operator partner, and lower revenue ($50,000 to $72,000 per vehicle) as it splits the sales with that partner. But it checks in with a gross margin per vehicle between $35,000 to $50,000 annually because it would push off significant costs and could scale up more quickly without needing to purchase and own the fleet.
There's further upside with management targeting a 50% reduction in its bill of materials (BOM) by the end of 2028. That's from cost savings realized through computing and sensors with next-generation chip alternatives and as lidar/radar/camera markets scale up and mature.
May Mobility also expects to reduce its BOM through cost reductions in hardware components and integration when its software could be installed by the original equipment manufacturer (with Toyota as a partner for AV-ready vehicle platforms at scale) rather than installing it in vehicles afterwards. Over the long term without drivers, management is targeting gross margins of about 70%, and margins under earnings before interest and taxes around 30%.
How going public helps
When the SPAC deal and merger closes, it could provide May Mobility with up to $337 million in funding. Investors can look at the economics and do the math: In 2025, the company generated roughly $10 million in revenue with a 27% gross margin, while burning $93 million in cash. The SPAC funds should enable it to strengthen its balance sheet and liquidity, finance added research and development, invest in the supply chain to reduce costs, and launch new in markets without drivers. However, without a major cash pile, the cash burn could erode its liquidity rather quickly.
What it all means
It's an exciting time in an automotive industry that's poised to evolve rapidly over the next decade. However, investors must understand that this is an exceptionally high-risk investment currently. May Mobility's 27% gross margin is an encouraging beginning, but the cash burn is significant and will only increase in the near term. It will rely heavily on the $337 million of fresh capital from its public debut, and that could erode rapidly.
Investors also have to consider that despite being in the early innings, there are some heavyweights accelerating forward, including market leader Waymo and Tesla's slow but steady progress with its Cybercab business.
May Mobility is intriguing, but this only scratches the surface. Potential shareholders must read through the investor presentation, available here, and recognize that this could end in a total loss. For now, this should be a company that most retail investors watch curiously from the sidelines, especially as this debut tests investor demand for a pure-play AV ride-hailing company.
Should you buy stock in ACP Holdings Acquisition Corp. right now?
Before you buy stock in ACP Holdings Acquisition Corp., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ACP Holdings Acquisition Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,625!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,397,147!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 22, 2026.
Bank of America is an advertising partner of Motley Fool Money. Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy.

May Mobility's SPAC Merger: Is This a Road to Nowhere for Investors?

Key Points
General Motors' returns have dwarfed that of its peers over the past three years.
While the competition is improving hybrid offerings amid a boom, GM is unveiling new V-8 engines.
The automaker also has a plan, albeit trailing its peers, to attack the growing demand for hybrid options.
To say that General Motors (NYSE: GM) has been doing a lot correctly lately might be an understatement. If the past three years have been a race, GM would be lapping its nearest rivals in Ford Motor Company and Stellantis -- and even its Japanese competition. If a picture is worth a thousand words, this graph says many more.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So, if the automaker is doing so many things correctly, why is it betting big on hunky V-8 engines when the competition is driving toward the hybrid sales boom? And will the decision cost investors by bringing its stock gains back down to earth?
Let's set the stage
As regulatory and policy changes severely hinder electric vehicle (EV) sales growth in the U.S., consumers have flocked to hybrids as gasoline prices continue to rise amid the Iran conflict. GM made a big gamble with its aggressive strategy to try to skip over the hybrid middle phase and focus more heavily on the long-term EV stage -- a costly mistake that forced the company to take billions in charges and write-downs.
Its competitors invested more in hybrids through this whole process, and they're reaping the benefits. Toyota, at the other end of the spectrum, accounted for 49% of U.S. hybrid sales during the first quarter of 2026, according to Cox Automotive.
On the other hand, GM currently sells one hybrid vehicle, and that's a Corvette. In comparison, Ford has a profitable and broad list of hybrid options. It has strong sales from its F-150 and Maverick hybrids, while also discontinuing light-duty diesels. So is GM doubling down by introducing new V-8 engines and high-mileage diesels instead of rebounding with more hybrid options?
What GM is doing
On Sept. 17, GM unveiled two sixth-generation small-block V-8 engine options for its redesigned Chevrolet Silverado 1500 and GMC Sierra 1500 pickups that go on sale this fall. This is happening even while dealers, investors, and analysts see competitors building hybrid powertrains as gasoline and diesel prices are up 39% and 73%, respectively, compared to a year ago, according to the AAA.
This looks like a big mistake at first glance, but there are a couple of reasons behind this decision. First, investors know that full-size trucks are the industry's bread-and-butter for juicy margins and big profits, and GM needs to optimize those sales to help offset increased costs from tariffs and the billions in write-downs the automaker took over the past year for driving too fast on its EV strategy.
Second, investors have to consider that these engines aren't developed overnight. The automaker has been working on them before the Trump administration threw multiple curveballs at the automotive industry, and GM will continue to deliver new technology with its gasoline-powered trucks that, even with an eventual transition to EVs, will still have a market.
What it all means
John Murphy, who became a widely respected voice in the automotive industry during his 26 years as Bank of America's automotive analyst, said that General Motors' avoidance of hybrids "is not as clear a major mistake as I think some people believe."
And although the company sells only one hybrid currently, it's not going to stay that way. It is bringing some plug-in hybrids to the market as soon as next year. There aren't clear details yet, but the automaker is likely to focus on adding plug-in hybrid options to its best-selling vehicles and perhaps those that share platforms. The Chevrolet Equinox, Buick Envision, GMC Terrain, and Cadillac XT4 all share a platform for which a hybrid powertrain could be added.
The headlines of GM investing in more gas-guzzling V-8 engines while consumers are more rapidly buying hybrids sound worse than they are. Management is doing a lot of things right. The graph at the beginning isn't going to change because of this strategic move.
Should you buy stock in General Motors right now?
Before you buy stock in General Motors, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Motors wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,625!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,397,147!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 22, 2026.
Bank of America is an advertising partner of Motley Fool Money. Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.

Why This Top Automaker's Gamble on V-8 Engines During a Hybrid Boom Actually Makes Sense

Key Points
Joby is ahead of Archer in the race for FAA certification.
Joby also generates a lot more revenue than Archer.
Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR) are both early movers in the nascent electric vertical take-off and landing (eVTOL) aircraft market. But over the past 12 months, shares of Joby and Archer have declined about 60% and 40%, respectively.
Without the Federal Aviation Administration's (FAA) certification for their first commercial flights, both companies struggled to impress their investors. Geopolitical conflicts, inflation, and fears of interest rate hikes also drove many investors toward more conservative investments.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But if we take a closer look at Joby and Archer, we'll notice that one key metric sets the two companies apart. With a market cap of $6.1 billion, Joby trades at 51 times this year's sales. Archer, which is valued at $4.2 billion, trades at 278 times this year's sales. Let's see why Archer's price-to-sales ratio is so much higher than Joby's, and if that will change in the future.
Joby generates much more revenue than Archer
Neither Joby nor Archer generates any revenue from commercial eVTOL flights. However, Joby's revenue surged from less than $1 million in 2024 to $53.4 million in 2025 as it received the first payments from its contracts with the U.S. Air Force's Agility Prime program. It also recognized some revenue from its acquisition of Blade Air Mobility's passenger business, a provider of helicopter and seaplane services, which closed last August.
For 2026, analysts expect its revenue to more than double to $119.5 million as it integrates Blade's passenger business and generates more revenue from its Agility Prime R&D contracts.
Archer also holds contracts with the Agility Prime program, but they function more like government-subsidized test flights rather than revenue-generating R&D projects. Unlike Joby, which plans to become a vertically integrated "transportation as a service" business that manufactures, owns, and operates its own air taxi network, Archer is an original equipment manufacturer (OEM) that sells most of its aircraft to third-party fleets. That's why it hasn't acquired any consumer-facing, revenue-generating businesses.
Archer generated less than $1 million in revenue in 2025. Still, analysts expect that figure to rise to $15.1 million in 2026 as it collects more leases and utilization fees from Hawthorne Airport in Southern California, which it acquired as a hub and test site last November.
But is Archer actually cheaper relative to its long-term growth potential?
The FAA certification process consists of five stages. Joby has already reached the fifth stage, while Archer has just completed the third stage.
Therefore, Joby could launch its first commercial flights in the U.S. before Archer. However, Archer's business could expand faster than Joby's -- albeit at lower margins -- because it's an OEM that will sell its Midnight eVTOLs to other companies. Joby will primarily use its S4 eVTOLs on its own air-taxi network, which will be integrated with Uber's platform.
Both companies have big manufacturing partners. Toyota backs Joby, and Stellantis supports Archer. However, Joby's partnership with Toyota is deeper and more structurally symbiotic than Stellantis' investment-driven deal with Joby.
By 2028, analysts expect Joby's revenue to reach $434.8 million. At its current market cap, it's valued at 14 times that estimate. But Archer's revenue is expected to reach $511.5 million by 2028 -- and it trades at just eight times that estimate. So while Archer looks more expensive than Joby today, that balance could shift over the next few years as it ramps up its production.
That said, I still think Joby is a better all-around eVTOL stock than Archer for three reasons. First, the S4's single tilt-rotor propellers make it faster and more energy-efficient than the Midnight. Second, Joby's vertically integrated business will generate higher margins than Archer's OEM business. Lastly, it's further ahead of Archer in the FAA certification race.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,109!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,689!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 16, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis and Uber Technologies. The Motley Fool has a disclosure policy.

The 1 Metric That Separates Joby From Archer in the Race to FAA Certification

A gradual shift in the automotive narrative has been witnessed recently. Over the past couple of years, changes in consumer preference, a lack of adequate charging infrastructure and unfavorable policy shifts have rewritten the script of the electric vehicle (EV) revolution, which was once touted as a fast track toward total auto market dominance, particularly in the United States.
Instead of an immediate leap to pure battery electric vehicles (BEVs), mainstream car buyers are lately embracing a pragmatic compromise: gas-electric hybrid vehicles.
To this end, renowned automotive analyst John Murphy has recently predicted hybrids to account for 34% of the U.S. market by 2030, up from just over 18% in 2026 (as cited in CNBC).
This surge should redirect investor attention from speculative EV startups to established automakers reaping hybrid profits — and the automotive Exchange-Traded Funds (ETFs) holding them.
Before identifying these specialized funds, we provide an in-depth look at how this fundamental powertrain shift is taking center stage, the key stocks involved and why automotive ETFs could benefit from a potential shift in investor sentiment.
How Hybrid Cars Are Taking Center Stage
Consumers are choosing hybrids for practical reasons: they offer significant fuel efficiency and don’t bring with them the charging infrastructure headaches when compared to pure EVs.
Another significant catalyst driving the increased adoption of hybrid vehicles is the expiration of the federal $7,500 EV tax credit in September 2025. The removal of the subsidy effectively raised the cost of pure EVs by thousands of dollars overnight, drastically stalling their sales growth.
As per a report published by Forbes in December 2025, the average cost of an EV is $55,000-$59,000. Meanwhile, hybrid pricing has dropped considerably, with prominent automakers like Toyota, Honda, Ford, Hyundai, and Kia having pushed hybrid variants into their most popular mainstream models, often at a modest upcharge of $1,500-$2,000.
Longevity also matters. Hybrids have been on the road for over 25 years, while battery packs usually last 15 to 20 years.
All these factors have been fueling the shift toward hybrid takeover and the most compelling evidence of it lies in the sales data. According to the U.S. Energy Information Administration (EIA), hybrid electric vehicles reached a record 16% of light-duty vehicle sales in the second quarter of 2026, while battery electric vehicles (BEVs) actually saw their market share decline to 6% from 7% the previous year.
Automakers Dominating Hybrids
Automakers dominating the surging U.S. hybrid market are Toyota, Honda and Hyundai Motor Group, which currently control 86% of the market, according to Baum & Associates’ data, as cited in CNBC.
In the first half of 2026, Toyota TM sold over 600,000 hybrids in the United States, capturing 50% market share.
Honda’s HMC hybrids now account for 31% of American Honda's total sales. The company set a new U.S. hybrid sales record in the first half of 2026.
Hyundai Motor Group has edged past Honda for the number two spot, with broad hybrid rollouts across SUVs and large vehicles providing growth that pure-EV makers lack.
Other automakers like General Motors GM, although currently making very few hybrid cars for the U.S. market, plan to reintroduce plug-in hybrid electric vehicles (PHEVs) by 2027.
Outlook: Why Hybrids Boost the Automotive ETF Narrative
The hybrid surge represents a structural realignment, not a temporary spike. As EV tax credits expired and range anxiety persists, hybrids offer an affordable, scalable solution.
This shift to hybrid vehicles benefits automotive ETFs holding traditional automakers. Broad auto sector ETFs should capture the high revenues generated by legacy giants like TM and GM while diluting single-stock exposure and insulating portfolios from pure-play EV volatility.
With hybrids expected to capture 34% of market share by 2030, established giants with extensive hybrid portfolios should become primary growth engines for automotive ETFs.
Automotive ETFs in Spotlight
As hybrid profitability is expected to boost balance sheets, the following ETFs, heavily weighted in hybrid-focused auto manufacturers, are positioned for sustained cash-flow strength and thus deserve a spotlight:
Global X Autonomous & Electric Vehicles ETF DRIV
This fund, with net assets worth $359.2 million, offers exposure to companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. Microsoft holds the first spot in this fund, with 3.95% weightage, while TM holds the seventh spot with 2.63% weightage. GM holds the ninth spot with 1.85% weightage.
DRIV has gained 12.3% year to date and charges 68 basis points (bps) in fees.
First Trust S-Network Future Vehicles & Technology ETF CARZ
This fund, with net assets worth $46.7 million, offers exposure to future vehicles companies and technology companies listed on a recognized global securities exchange and engaged in the electric and autonomous vehicle manufacturing; enabling materials; or enabling technologies sectors. Microsoft holds the first spot in this fund, with 6.21% weightage. TM and GM hold more than 0.7% weightage in this fund, ranking within the top 20 spots in CARZ.
The fund has rallied 33% year to date and charges 70 bps in fees.
State Street SPDR S&P Kensho Smart Mobility ETF HAIL
This fund, with assets under management (AUM) worth $18 million, offers exposure to companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems. Via Transportation holds the first spot in this fund, with 2.87% weightage, while HMC holds the second spot with 1.97% weightage. GM holds the fourth spot with 1.74% weightage.
HAIL has risen 3.7% year to date and charges 45 bps in fees.
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Automotive ETFs in Spotlight as Hybrid Cars Take Center Stage

Key Points
Joby Aviation would sport a $64 billion market cap if it grew tenfold from today.
To support that valuation, however, Joby would have to scale its business immensely.
A stock that grows 10 times its original value -- a 900% increase -- is something most investors would be happy to have in their portfolios. But it rarely happens in one sudden leap, if it even happens at all, with most eventual 10-baggers needing several years to decades to deliver a tenfold gain to those who patiently hold on.
Could Joby Aviation (NYSE: JOBY), the air taxi company, be one of these tenfold winners?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The long flight to 10
Joby Aviation is making electric air taxis, also called electric vertical takeoff and landing (eVTOL) aircraft.
If you've never heard of or seen an eVTOL, that's because this type of aircraft hasn't been approved for commercial operations in the U.S. But if they are approved, well, buckle up -- not only could your daily commute look different (from the air, that is), but the skies above cities could have fewer helicopters and more of these quiet, electric, drone-like vessels whizzing to and fro.
The eVTOL market is expected to account for a sizable share of the global economy, with Morgan Stanley once predicting a total addressable market of a trillion by 2050.
That brings us to Joby: What makes Joby so exciting is that it is the frontrunner of this nascent market. I mean that literally: Joby has logged more than 50,000 flight miles, and its aircraft is now in the fifth and final stage of FAA type certification. It earns revenue through its passenger helicopter business, Blade, and it is also working with Toyota (NYSE: TM) to lay the groundwork for producing air taxis at scale.
All this is to say: If the eVTOL industry becomes the billion-dollar market analysts are predicting, then Joby would be its most obvious beneficiary.
But would it be enough to make Joby a 10-bagger?
At the time of writing, Sept. 10, Joby had a market cap of roughly $6.4 billion. A tenfold gain would bring that market cap up to about $64 billion, assuming the share count stayed the same, which would imply about $14 billion in annual revenue if its price-to-earnings multiple were 30 and its net margins were 15%. Put differently: If every Joby eVTOL aircraft were earning $2 million annually, then it would need a fleet of 7,500 aircraft to rake in $15 billion a year.
Those are lofty numbers, requiring aggressive growth. If Joby were to make 1,000 eVTOL vehicles annually, it would have 7,500 in 7.5 years -- 15 years if it were to produce 500 annually. Right now, Joby has built five aircraft, with 12 more in production.
So yes, Joby could grow into a $64 billion market cap -- though getting there will take years of expansion. Indeed, a tenfold return, if it ever comes, will need time, possibly a decade or longer. That could be a long flight if you need your money sooner -- not a flight every investor can take, at any rate. Given Joby's speculative nature right now, I would only invest if you have the time horizon to see it grow; otherwise, there are plenty of other great opportunities that require less patience and fewer leaps of faith.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Steven Porrello has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Joby Aviation Could Deliver 10x Returns for Patient Investors

Key Points
Joby's acquisition of Blade Air Mobility has given it routes, paying passengers, and experience.
Joby and Atoms have teamed up to develop vertiports.
Toyota's manufacturing expertise could be showing up in Joby's 40% reduction in nonconformance rate.
A stock that sets you up for life usually asks you to take a chance, a big chance, one with high risks if its main business fails, but high reward if it succeeds. Joby Aviation (NYSE: JOBY) could be one of these stocks. Here's why.
Joby is building a business before takeoff
The electric vertical takeoff and landing (eVTOL) maker wants to launch an air taxi service that carries passengers over heavy traffic. Anyone who has slogged through congested city streets -- say, in New York City, Atlanta, Los Angeles, or Chicago -- can understand Joby's appeal. Still, the bull case for Joby stock requires some imagination, as the company's eVTOL lacks regulatory approval to fly commercially and does not yet have a large enough fleet to serve the areas where it wants to fly.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The lack of FAA type certification, which Joby needs to move forward, might be obscuring how far Joby has actually come in building its business. Indeed, many, if not most, investors may not realize how many pieces Joby has assembled to build a platform ready to welcome passengers when the FAA finally gives the green light.
We can start with Blade Air Mobility, whose passenger business Joby acquired in August 2025. Blade, which lets you book helicopter trips through an app, gave Joby access to existing routes, along with ready-made terminals and lounges in busy markets. The business itself has been growing -- seats booked in the second quarter increased more than 50% year over year -- but the experience and data could be just as valuable. Joby can start measuring where people want to fly, when they want to leave, and how much they're willing to pay. This could help Joby make some big decisions about putting its first commercial eVTOLs to work.
Then, there's the August partnership with Atoms. Joby has wisely teamed up with this infrastructure company to develop vertiports in Florida, New York, and Texas. These locations aren't random: They were selected under the White House-backed eVTOL Integration Pilot Program (eIPP) as markets where Joby can prepare for early operations. Additionally, the two companies plan to develop vertiports in California, which wasn't among Joby's initial eIPP markets but is obviously important to Joby's long-term plans.
Finally, we have to mention Joby's longtime partnership with Toyota (NYSE: TM). Not only has Toyota committed about $894 million to Joby, but it has also formed a joint venture with it to prepare Joby for commercial production. That might sound like a "soft" advantage, but progress might be showing up concretely on the factory floor: Joby's manufacturing nonconformance rate fell nearly 40% in the first half of 2026. That essentially means production is meeting specifications more often, which, in turn, reduces the need for rework.
Of course, without a profitable eVTOL service, Joby will be a risky, speculative stock over the near term. In short, Joby needs its investors to provide a lot of time -- five to 10 years seems realistic -- before it might deliver the growth expected of it. I would not recommend this stock if your time horizon is short. But if you can give Joby time to grow, the rewards could make the wait worthwhile.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 10, 2026.
Steven Porrello has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: Buying Joby Aviation Today Could Set You Up for Life

Key Points
Joby’s vertically business model has more growth potential than Archer’s OEM business.
Joby’s stock deserves to trade at a premium to Archer’s stock.
In 2009, NASA released a concept video of an electric vertical take-off and landing (eVTOL) aircraft, which could hover, take off, and land vertically. That video prompted many aerospace companies to develop their own eVTOLs, but many of those projects fizzled out.
Today, two of those early movers have risen to the top of the nascent market: Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR). Both companies could soon be cleared by the Federal Aviation Administration (FAA) to launch their first commercial flights. However, I think it makes more sense to buy Joby instead of Archer as the top eVTOL play.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why is Joby a better buy than Archer?
Joby's S4 and Archer's Midnight both carry a single pilot and four passengers. But the S4 travels up to 150 miles on a single charge at a maximum speed of 200 miles per hour, while the Midnight has a shorter range of 100 miles and a lower top speed of 150 miles per hour.
The S4 uses single-tilt-rotor propellers for lifting and cruising. That makes it lighter, faster, and more energy efficient than the Midnight, which uses separate propellers for both tasks. Joby is also developing a hydrogen-powered eVTOL, but Archer isn't.
Joby aspires to become a vertically integrated "transportation as a service" provider that manufactures, owns, and operates its own fleet as a first-party air taxi network. To support that expansion and streamline its supply chain, it mainly uses first-party components. Archer plans to become an OEM for other aviation companies and relies heavily on third-party suppliers.
Joby and Archer have plenty of support from big investors and partners. Toyota, Delta, and Uber (NYSE: UBER) back Joby. Stellantis and United Airlines support Archer. Both eVTOL makers also plan to launch their first commercial flights in the U.S. and the UAE.
However, Joby is farther along in the FAA's multi-stage certification process than Archer. With some help from Uber -- which plans to integrate Joby's S4 flights into its new Uber Air service -- Joby could expand its commercial flights at a much faster rate than Archer.
Why does Joby deserve a premium valuation?
From 2025 to 2028, analysts expect Joby's revenue to rise from $53 million to $435 million, and Archer's revenue to surge from less than $1 million to $512 million. Archer might generate more revenue than Joby by selling more eVTOLs to other companies. But as an OEM, Archer will naturally have less pricing power than Joby's vertically integrated operator business model.
Archer only trades at 8.5 times its 2028 sales, while Joby trades at 15.5 times that estimate. Archer might seem like the cheaper stock, but it's also a weaker eVTOL maker than Joby. That's why I believe investors should pay a premium for Joby but avoid Archer.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!*
Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines, Stellantis, and Uber Technologies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.