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 Motor Corporation

Key Points
Ford's CEO admitted there are "no guarantees" that its new "assembly tree" investment will work out as planned.
If this transformation in the way it manufactures electric vehicles is successful, it could stop the bleeding in the company's money-losing EV division.
It will be a few years before we find out if Ford's new strategy is succeeding, which makes it a riskier investment now.
Iconic American carmaker Ford Motor Company (NYSE: F) has been an underwhelming investment for decades, lagging not only the broader market but even other legacy automakers like General Motors and Toyota.
That's why all eyes were on CEO Jim Farley on Aug. 11 as he promised a "Model T moment" for the company, unveiling a revolutionary new electric vehicle (EV) production system that could cut the company's EV manufacturing costs dramatically. However, Farley also admitted, "We've never built a car this way. There are no guarantees."
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Despite the risks, after an immediate share price drop, Ford's stock is up 2.6% since the announcement. Is it time to buy?
Tackling the problems at Ford
Even though the Ford F-150 Lightning pickup is the best-selling electric truck in America right now, and the Mustang Mach-E crossover is one of the best-selling EVs overall, Ford's "Model E" EV division has been hemorrhaging money for years. It lost $2.2 billion in the first half of this year alone.
That's partly due to the company's manufacturing processes: Even when the company uses an existing gas-powered design as the basis for an EV design, the fundamental structural differences between battery-powered and internal combustion assemblies often result in production problems and vehicle recalls.
Farley's solution is a $5 billion effort to convert the company's Louisville production facility into a full-time EV production facility. In doing so, Ford will completely rework the existing assembly line into an "assembly tree" in which three different vehicle sections are produced on three different lines that then converge into one for the final assembly.
In theory, this reconfigured assembly process will reduce the number of parts required by 20% and speed up production times by as much as 40%, allowing Ford to profitably manufacture an electric pickup truck that it can sell at around $30,000 by 2027. Ford believes it could eventually produce eight different EV models using this new line configuration.
That would be a feat no other manufacturer has managed. If Ford can pull it off, it could dramatically reshape the company's prospects.
But that's a big "if."
What could go wrong
Just about anything and everything could go wrong with this plan.
First of all, the timing of Ford's announcement -- which comes as President Donald Trump is doing away with the federal EV subsidies that have helped boost demand -- is really unfortunate. If consumer demand for EVs slides, Ford could be stuck with a reconfigured plant churning out affordable vehicles that not enough people are buying.
Even if EV demand persists, unforeseen circumstances could prevent the new assembly process from fully delivering the expected efficiency and cost savings, which would mean Ford had sunk an additional $5 billion into its Model E division with nothing to show for it.
It won't happen soon
These changes won't happen overnight: Ford is suggesting that it will be 2027 before the first vehicle made at the reconfigured Kentucky plant rolls off the assembly line. That seems like a pretty optimistic timeline, and it's the earliest investors would likely see any boost to the company's stock as a result of this announcement.
So, even if Ford can make it happen, it means we won't get a clear sense of whether this $5 billion investment will pay off until then.
In an ideal world, the new process will be wildly successful and Ford will be able to undercut its competitors on the prices of its electric vehicles, thus stopping the bleeding from its EV division, but as Farley said, that's far from a guarantee.
Investors would be wise to hold off on buying shares of this longtime market dud until the case for its turnaround is much stronger.
Should you invest $1,000 in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, 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 Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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John Bromels has positions in Ford Motor Company. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ford CEO Jim Farley Says "There Are No Guarantees" With New $5 Billion EV Investment. Is Ford Stock a Risk Worth Taking for Investors?

Toyota TM reported fiscal first-quarter 2026 earnings per share of $4.47, which missed the Zacks Consensus Estimate of $4.67 and declined from the year-ago quarter’s earnings of $6.35. Consolidated revenues came in at $84.8 billion, which beat the consensus mark of $82.6 billion and also grew from $75.9 billion in the year-ago quarter.
Toyota had consolidated cash and cash equivalents of ¥8.21 trillion ($56.8 billion) as of June 30, 2025. Long-term debt was ¥22.94 trillion ($158 billion), down from ¥22.96 trillion as of March 31, 2025.
Toyota Motor Corporation Price, Consensus and EPS Surprise
Segmental Results
The Automotive segment’s net revenues for the fiscal first quarter increased 2.6% year over year to ¥11.4 trillion ($78.9 billion). Operating profit came in at ¥911.4 billion ($6.31 billion), which declined 18.5% from the year-ago period.
The Financial Services segment’s net revenues rose 13% from the prior-year quarter to ¥1.14 trillion ($7.9 billion). The segment registered an operating income of ¥222.2 billion ($1.53 billion), which rose 39.1% from the first quarter of fiscal 2025.
All Other businesses’ net revenues totaled ¥342.8 billion ($2.37 billion) in the reported quarter, which increased 8.6% year over year. The unit generated an operating profit of ¥37.4 billion ($258 million), which fell 8.1% year over year.
FY26 Guidance
For fiscal 2026, Toyota projects total retail vehicle sales of 11.2 million units, indicating an increase from 11.01 million units sold in fiscal 2025. Fiscal 2026 sales are expected to total ¥48.5 trillion compared with ¥48.03 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.2 trillion, indicating a contraction of 33.3% year over year.
Pretax profit is estimated to be ¥3.87 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.37 trillion compared with ¥1.33 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.
Other Auto Giant Releases
General Motors GM reported second-quarter 2025 adjusted earnings of $2.53 per share, which surpassed the Zacks Consensus Estimate of $2.39. The bottom line, however, decreased from the year-ago quarter’s $3.06. Revenues of $47.12 billion beat the Zacks Consensus Estimate of $46.25 billion but fell from $47.97 billion recorded in the year-ago period.
It had cash and cash equivalents of $22.38 billion as of June 30, 2025. The long-term automotive debt at the end of the quarter was $15.48 billion. Net automotive cash provided by operating activities amounted to $4.65 billion during the quarter under review.
Ford Motor Company F reported second-quarter 2025 adjusted earnings per share of 37 cents, which surpassed the Zacks Consensus Estimate of 34 cents but declined from 47 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $50.18 billion, up 5% year over year. F’s total automotive revenues came in at $46.94 billion, beating the Zacks Consensus Estimate of $41.72 billion and rising from $44.81 billion generated a year ago.
It reported adjusted free cash flow of $2.83 billion for the quarter. It had cash and cash equivalents of $23 billion as of June 30, 2025. Long-term debt, excluding Ford Credit, totaled $16.74 billion on June 30, 2025.
Tesla TSLA reported second-quarter 2025 earnings per share of 40 cents, which topped the Zacks Consensus Estimate of 39 cents but decreased from the year-ago figure of 52 cents. Total revenues of $22.5 billion surpassed the consensus mark of $22.4 billion but declined 12% year over year.
It had cash/cash equivalents/investments of $36.8 billion as of June 30, 2025, compared with $36.5 billion as of Dec. 31, 2024. Long-term debt and finance leases, net of the current portion, totaled $5.2 billion, down from $5.8 billion as of Dec. 31, 2024.
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Toyota Q1 Earnings Miss Expectations, Revenues Rise Y/Y

The following are the top rated Consumer Discretionary stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
DORMAN PRODUCTS INC (DORM) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dorman Products, Inc. is a supplier of replacement and upgrade parts in the motor vehicle aftermarket industry, serving passenger cars, light, medium, and heavy-duty trucks, as well as specialty vehicles, including utility terrain vehicles and all-terrain vehicles. Its segments include Light Duty, Heavy Duty, and Specialty Vehicle. The Light Duty segment designs and markets replacement parts and fasteners primarily for passenger cars and light trucks with sales to retailers and wholesale distributors who primarily serve passenger car and light truck customers. The Heavy Duty segment designs and markets replacement parts primarily for medium and heavy trucks with sales to independent distributors, independent component specialists and rebuilders, and auto parts stores that focus on the heavy-duty market. Specialty Vehicle segment designs, markets, and manufactures aftermarket parts and accessories for the powersports market with sales through direct-to-consumer, dealers, and installers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DORMAN PRODUCTS INC
DICK'S SPORTING GOODS INC (DKS) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DICK'S Sporting Goods, Inc. is an omni-channel sporting goods retailer. The Company owns and operates Golf Galaxy, Public Lands, and Going Going Gone! specialty concept stores, and also offer its products online and through its mobile applications. It also owns and operates DICKS House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping. It operates approximately 723 DICKS Sporting Goods locations across the United States. It carries a wide variety of national brands, including but not limited to adidas, Asics, Brooks, Callaway Golf, Carhartt, Columbia, Hoka, Jordan, New Balance, Nike, Peloton, The North Face, Under Armour, Wilson, Yeti, and others. Its vertical brands include brands that it owns across hardlines and softlines and are available in its stores and online such as Alpine Design, CALIA, DSG, ETHOS, Fitness Gear, MAXFLI, Nishiki, Walter Hagen, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DICK'S SPORTING GOODS INC
FORD MOTOR CO (F) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Companys segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FORD MOTOR CO
TOYOTA MOTOR CORP (ADR) (TM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. The Company operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by the Company and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TOYOTA MOTOR CORP (ADR)
APTIV PLC (APTV) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Peter Lynch is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aptiv PLC is a global technology company that develops connected solutions enabling a more sustainable future of mobility. The Company delivers end-to-end mobility solutions enabling its customers transition to more electrified, software-defined vehicles. The Companys segments include Signal and Power Solutions and Advanced Safety and User Experience. The Signal and Power Solutions segment includes complete electrical architecture and component products. The Advanced Safety and User Experience segment includes vehicle technology and services in advanced safety, user experience and smart vehicle compute and software, as well as cloud-native software platforms, autonomous driving technologies and DevOps tools. It designs and manufactures vehicle components and provides electrical, electronic and active safety technology solutions to the global automotive and commercial vehicle markets. It operates manufacturing facilities and technical centers utilizing a regional service model.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of APTIV PLC
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 8/12/2025

Key Points
Joby's electric air taxis promise emissions-free trips over congested cities at speeds up to 200 mph.
Partners like Toyota, Delta, and Blade give Joby cash, infrastructure, and market access ahead of launch.
With no revenue yet and trading around 20 times book value, the market is betting on impeccable execution.
The idea of hailing a flying car has always belonged to science fiction. But thanks to Joby Aviation (NYSE: JOBY), the idea of catching a flying taxi is slowly edging into reality.
The company's electric vertical takeoff and landing (eVTOL) aircraft are designed to carry passengers over congested cities at speeds upwards of 200 mph. And they are quieter than a helicopter and have zero emissions. This vision isn't theoretical. Joby has already demonstrated eVTOLs in New York and Dubai and is moving through the Federal Aviation Administration's (FAA's) certification process as I write.
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With major strategic partners, a strong cash position, and an aggressive market expansion plan, Joby could be one of the first to make commercial flying taxis a real business. The question for investors is whether this growth stock is ready for takeoff today, or might it be wiser to wait until the company has a little more grounding?
From blueprints to boarding passes
Joby is trying to solve a problem that most city drivers face everyday: traffic. And not just any traffic. Horribly congested traffic, the kind that makes you wish you were anywhere (even at the DMV, with slow internet) but stuck in it.
To get there, however, Joby needs a few things to work in its favor. The first is full FAA-type certification, the regulatory green light that will let it fly passengers in its eVTOLS. The second is the infrastructure to make its vision practical, that is, a network of vertiports, charging stations, and terminals in the right locations so customers can board, fly, and land without the experience feeling like more hassle than just staying in the car.
So far, the company has checked off some big early boxes. It already holds FAA Part 135 certification, which means it's cleared to operate as an air carrier with approved aircraft. It's also moving to lock down prime real estate for takeoff and landing, from Manhattan heliports to Dubai's planned aerial taxi hubs.
But that doesn't mean the company is smooth flying -- yet. Its biggest "unknown" is time. Every month that slips by without full FAA certification pushes profitability that much further into the future. Add in the fact that it's burning cash each quarter, and you start to see why patience -- and a deep cash cushion -- are non-negotiable.
Big names, big bets
Speaking of cash, where is Joby getting money for research and development?
Well, here's where the story gets interesting.
Although Joby is pre-revenue, it has an impressive ecosystem of backers and partners. Back in 2022, Delta Air Lines (NYSE: DAL) invested about $60 million in Joby, with the expectation that Joby would eventually create a premium service for Delta customers. More recently, Toyota (NYSE: TM) committed $894 million to helping Joby with certification and commercial production of its electric air taxis. In perhaps its boldest move, Joby plans to acquire Blade Air Mobility (NASDAQ: BLDE), which would help it gain access to central terminals in New York, Southern California, and Europe.
Meanwhile, international expansion is already underway. In Dubai, Joby signed an exclusive six-year agreement with the Roads and Transport Authority (RTA) to launch aerial tax services there in 2026. Finally, Joby recently announced that it's partnering with L3Harris to develop hybrid eVTOLs for defense applications, with demonstrations planned in 2026.
Things seem to be rolling. But before we get too bullish, let's look at its finances.
The numbers under the hood
Here's where reality checks in.
Over the last 12 months, Joby generated just $110,000 in revenue, essentially none, while recording a net loss of about $596 million. Just in the first quarter of 2025, it posted a loss of $82 million, or $0.11 per share, driven largely by spending in research and development. To add fuel to the fire, cash burn was $111 million for the quarter.
The balance sheet, however, is a strength, largely because of partners. Joby holds about $813 million in cash and short-term investments. That net cash position gives the company some runway to fund operations without immediate dilution.
Still, with a market cap near $17 billion, the stock is priced well ahead of fundamentals. It's price-per-book (P/B) ratio -- which measures how richly the market values the company relative to the net assets on its balance sheet -- sits around 20. That's steep compared with the S&P 500's median of about 3. Even Archer Aviation (NYSE: ACHR), Joby's primary competitor, is trading at roughly 5.6 times book value. That doesn't mean Joby can't grow into its valuation, but it does underscore how much future success is baked into today's price.
Verdict: Should you hitch a ride?
When people talk about Joby's risks, they usually circle the big ones: FAA certification, steady cash burn, competition. But there's a second layer of risks -- call them structural -- that could make investing in Joby choppy in the short term.
Start with the skies themselves. Urban airspace is already a juggling act, and air traffic control in cities like New York and LA runs hot most days. If regulators decide to keep eVTOL traffic on a tight leash, Joby's flight schedule could end up thinner than its business plan assumes.
On the ground, vertiports have to be built, and convincing neighborhoods to welcome them is another story entirely. Costs could also be a problem: insurance, pilot pay, and battery charging might keep fares higher than commuters are willing to swallow.
Still, if you believe Joby can navigate these headwinds and execute on time, the payoff could be big. For long-term investors who can tolerate volatility, this is a speculatve bet on a market that doesn't exist yet but could make ground transportation look radically different ten years from now.
Should you invest $1,000 in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
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Steven Porrello has positions in Archer Aviation. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Flying Cars Aren't Just Science Fiction Anymore. This Company Is Leading the Charge in eVTOLs -- and Yes, It's Publicly Traded.

Will the NFL Bring the Magic Back to Disney Stock?

Key Points
Joby Aviation is working to get its electric air taxi certified.
There is a lot of demand for air taxi networks, but production will be slow.
The stock is getting ahead of itself and is likely to underperform.
Thematic investing has returned in a big way in 2025, with electric vertical takeoff and landing (eVTOL) stocks a hot idea at the moment. Joby Aviation (NYSE: JOBY) -- a leader in the space with major manufacturing partnerships -- has seen its stock rise over 100% this year. It recently surpassed an all-time high of $17.50 a share.
Investors are betting that electric air taxi networks can disrupt transportation in major cities. But does that make Joby Aviation a millionaire maker if you buy at all-time highs today? If you run the numbers, the answer is abundantly clear.
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Air taxis in every global city
Electric air taxis are piloted vehicles with rotors similar to helicopters, but much quieter. Using electric batteries, these innovations make the technology much more workable in highly populated neighborhoods, which is why developers like Joby Aviation are investing heavily in the systems. Joby's aircraft that is currently going through Federal Aviation Administration (FAA) certifications will have four passengers and can fly upward of 200 miles per hour.
The company is working with partners like Delta Air Lines and Uber Technologies to build point-to-point networks for these air taxis in major cities. The pitch for customers is turning an hour-long drive in traffic into a 10 minute scenic ride above the city to places such as the airport. No traffic routes are operational yet, but there are plans to build these point-to-point networks in cities such as Los Angeles, New York, and Dubai.
Saving customers time should lead to healthy ticket prices for these air taxi rides. It is unclear the ceiling on what a customer would pay, but it is likely that each trip will cost hundreds of dollars per person, especially if the company caters to wealthier consumers.
This potential disruption of transportation systems is what has investors excited about Joby stock. It now has a market cap approaching $15 billion even though the company generates zero dollars in revenue today.
A long production timeline
Joby management hopes to soon get its vehicles approved by the FAA, and then it will begin ramping up production and helping build taxi networks in its partner cities. It has a major investment from Toyota Motor, which is providing around $1 billion in funding along with its manufacturing expertise to help scale production.
Even if Joby gets its vehicle approved soon, its manufacturing capacity is still small. Even after its latest update on expanding its California facility, the company states that it will only have the ability to produce 24 electric air taxis a year. At this rate, it may only have a few hundred taxis in operation 10 years from now.
To get there, Joby Aviation has spent a ton of money -- over $135 million on research and development just last quarter. Free cash flow was close to negative $500 million over the last 12 months. Building transportation vehicles is difficult, expensive, and time-consuming, especially with new technologies such as electric air taxis.
Joby's cash burn is likely to continue for years, which will require even more fundraising from its capital partners. The company currently has around $1 billion in cash if you include its fundraising commitments from Toyota.
Is Joby Aviation a millionaire maker?
If multiple electric air taxi routes are operational in every major city worldwide, there will be demand for thousands of electric air taxis to be produced every year. With around 100 metropolitan areas with over 5 million people in the world -- most of which have terrible traffic problems -- you could see cities utilize dozens of electric air taxis to help alleviate traffic. Wealthy customers would likely pay up for the service.
This presents a large addressable market for Joby Aviation. However, it is tough to see how this correlates to a rising stock price compared to its current valuation of $15 billion. Building air taxis is going to be a low-margin business, meaning even if revenue grows to over $1 billion or several billions of dollars a few years from now, Joby Aviation will still trade at a high price-to-earnings ratio (P/E). This is also a scenario where the pre-revenue company succeeds on its risky business strategy. A lot can go wrong when you are burning $500 million a year and generate no sales.
Joby Aviation is likely not a millionaire-maker stock, even if it succeeds in building the electric air taxi industry from scratch.
Should you invest $1,000 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
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*Stock Advisor returns as of July 21, 2025
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Joby Aviation Stock Make You a Millionaire?

Key Points
Archer's chance to expand into the defense industry is a huge market opportunity.
Joby's differentiated business model gives it upside potential.
Go outside and look up the next time you hear an aircraft overhead: You'll see the same airplanes or helicopters you're used to seeing.
But that may soon change in certain metropolitan areas. Manufacturers of electric vertical takeoff and landing (eVTOL) aircraft are progressing toward the launch of commercial operations.
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Recognizing this, investors are paying close attention to eVTOL leaders Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY). Let's see how these two fool.com contributors break down the bull cases for each stock.
Archer targets commercial and defense applications
Scott Levine (Archer Aviation): Taking a two-pronged approach, Archer plans on selling its Midnight eVTOL aircraft directly to operators as well as providing a direct-to-consumer aerial ride-share service. Already, the company has made significant progress in both regards, but what is particularly interesting about its growth prospects is the opportunity as a defense contractor.
Archer has inked a number of notable agreements, suggesting the company is well positioned for a quick takeoff once it has received all necessary Federal Aviation Administration (FAA) certifications. In addition to a deal with United Airlines, which will see the carrier purchase up to $1.5 billion in eVTOLs, Archer has signed deals with Abu Dhabi Aviation and Ethiopian Airlines -- both of which are under Archer's Launch Edition program to deploy aircraft in early-adoption markets.
The company continues to strengthen its foothold in the civilian market, but it's the possibility of expanding into defense applications that seem particularly alluring. In late 2024, Archer announced the formation of an exclusive partnership with defense contractor Anduril to develop hybrid eVTOL aircraft for crucial defense applications. The goal is securing a potential program of record from the Department of Defense.
Should Archer succeed in developing a hybrid eVTOL for defense purposes, the company would also have a sizable opportunity in selling its aircraft to NATO allies. With global tensions remaining high and showing little indication of abating, the ability to offer a hybrid eVTOL aircraft to U.S. allies seems like an auspicious option.
Heavyweight backers provide reassurance for Joby investors
Lee Samaha (Joby Aviation): Joby Aviation is flying a different route to generating long-term value for investors, but it makes sense and gives the stock more upside potential than its rivals.
One differentiating factor is that -- unlike many of its peers, which heavily rely on established companies for technology -- Joby follows a vertically integrated process where it develops components in-house. Moreover, Joby doesn't intend to sell its aircraft to other companies. Instead, it plans to manufacture and operate its aircraft itself while also offering transportation services.
It's an ambitious goal that might have seemed unfeasible a decade ago. However, the company has some heavyweight backers, including Toyota, Uber, and Delta Air Lines, which gives cause for confidence.
Toyota has committed to investing up to $894 million in Joby and is providing parts as well as helping with its manufacturing. Meanwhile, Uber's investment and Joby's acquisition of Uber's flying taxi business, Elevate, position Joby to scale up transportation services after certification.
Delta's investment and partnership will enable Joby to offer airport transfers to Delta passengers -- a value-added service for both companies, as Delta seeks to foster loyalty among its premium customers.
All told, Joby's plans have solid backing, and the stock offers substantial upside potential to investors.
Disruptors in the travel industry don't come along frequently, but when they do, investors sit up and take notice. This is the case with both Archer and Joby -- two companies leading the path forward in the development of electric air taxi service.
For these upstart companies, there's bound to be some turbulence as they navigate a nascent industry, yet investors with long-term investing horizons may be rewarded with an Archer or Joby investment. For those also interested in defense industry exposure, Archer will be more appealing, while those less concerned with the defense angle may choose Joby instead.
Should you invest $1,000 in Archer Aviation right now?
Before you buy stock in Archer 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 Archer 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Buy: Archer Aviation vs. Joby Aviation

Key Points
Joby Aviation stock is soaring on optimism for its electric air taxi network.
The company is aiming to ramp up manufacturing and finish its FAA certification.
The stock trades at an expensive price versus any reasonable expectations for future revenue.
Nobody enjoys sitting in traffic. And yet, the average American will sit in over two weeks of traffic each year. One company believes it has paved a way to help alleviate the traffic pressure in cities around the globe: Joby Aviation (NYSE: JOBY). It is manufacturing and testing electric air taxis, which can go point-to-point over cities more quietly than traditional helicopters, saving people time and frustration.
Joby's air taxis are not operational yet, but the stock recently burst through to an all-time high of $17.50 a share on investor enthusiasm for its manufacturing progress and partnerships with large transportation players. It now has a market cap of $14.8 billion even though it generates zero dollars in revenue. Here's my prediction for what comes next with Joby Aviation stock.
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Betting big on air taxis
Utilizing electric motor technology and innovations in aerodynamics, Joby Aviation has created a vertical takeoff vehicle that is quiet enough to leave from residential neighborhoods. It is manned by a pilot, can fit four riders, and has a top speed of 200 miles per hour. The company is planning to set up point-to-point networks in major cities such as New York, where customers will be able to hop from Manhattan directly to the airport, shaving off time that would have been spent sitting in traffic.
The company is not officially operating its network yet, but it's working with the Federal Aviation Administration (FAA) in the final stages of testing its aircraft. Multiple pilots have flown the Joby vehicle already, with its manufacturing facilities producing its fifth aircraft for pilots last quarter. Management recently announced an expansion of its factory in California, with plans to eventually produce 24 air taxis annually from this location.
Multiple transportation companies have seen the promise in Joby Aviation. Toyota Motors has invested a total of $894 million in the company and is working directly with the company on manufacturing processes. Delta Air Lines is an investor, while Uber Technologies is a partner that will eventually add Joby flights to its ride-sharing application. Joby needs to get a lot of customer demand in order to get a return on its air taxi spending, which will require full operating schedules and high ticket prices. This is possible if its partners such as Uber and Delta drive customers to the upcoming service.
The company is not just looking to expand in New York. It is working to add air taxis to Los Angeles, Dubai, and even Japan and the United Kingdom. Most major cities in the world have traffic issues and could see some (especially wealthier) citizens utilize this upcoming air taxi network.
Aggressive spending and cash burn
There is a lot of promise with Joby's air taxis, but the growth is all theoretical today. Joby does not generate any revenue, is still in the FAA certification process, and has manufactured only a few air taxis to date.
Still, it is aggressively burning money on research, manufacturing, and overhead costs as it works to build up its vertically integrated factory network in the United States. In the first quarter of 2025, it spent $134 million on research and development. Over the last 12 months, free cash flow was negative $489 million. The company does have $813 million in cash and a $500 million commitment from Toyota, but this only gives it two to three years of cash burn at its current rate before it will need to raise more funds.
My prediction for what comes next with Joby Aviation stock
I like the idea of air taxi networks. As long as they can be operated safely, it is a path forward to help alleviate traffic on major highways in metro areas, and it looks like something people will pay up for in order to save time on the way to the airport or other societal hubs.
My problem comes from Joby Aviation's market cap of $14.8 billion, making the stock wildly overvalued for a pre-revenue start-up. At its current manufacturing run-rate of 24 air taxis a year that could grow in the years to come, Joby Aviation may have 200 vehicles in operation by 2030. Assuming 20 flights per vehicle per day at $500 each split among the four passengers, that is $730 million in annual revenue for Joby Aviation. It is currently spending close to $500 million a year before generating any sales. There will be variable costs when its taxi network starts operating, along with more money spent to build each vehicle.
It is unlikely that Joby Aviation will generate a profit by 2030 even if it can scale up its air taxi routes and charge an average of $500 per flight (which is more than the average round-trip airline ticket for comparable routes). Air taxis are an interesting idea, but that doesn't mean Joby Aviation is a buy with the stock trading at a market cap of $14.8 billion. I predict that pain is ahead for Joby Aviation shareholders for the rest of this decade, even if the company remains on track with its air taxi network buildout.
Should you invest $1,000 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Joby Aviation Stock Soars to an All-Time High: My Prediction for What Comes Next

Key Points
Joby Aviation's business model differs significantly from that of its peers.
There's reason to believe its vertically integrated strategy will win out.
The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.
The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.
What makes Joby Aviation different
It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.
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In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:
Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."
Both points are crucial to understanding the investment case.
Joby's in-house development
Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.
For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.
Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.
As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.
A vertically integrated transportation company
Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.
On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.
Can Joby Aviation be a life-changing investment?
Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.
Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.
There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.
Should you invest $1,000 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could Buying Joby Aviation Stock Today Set You Up for Life?

Key Points
The U.S. and Japan struck a trade deal, resulting in a 15% tariff.
The terms were much better than expected, so much so that U.S. carmakers complained.
U.S. carmakers will have to pay even higher rates on imported input costs and components.
Shares of Toyota Motor (NYSE: TM) rallied 11.8% this week, according to data from S&P Global Market Intelligence.
Toyota didn't have any major company-specific news this week, as it doesnt reportQ2 earnings until Aug. 7. However, there was big news on the trade front, with the Trump administration and Japan inking a trade deal that would put milder-than-expected tariffs on Japanese imports, including Toyota cars.
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Will recent tariffs actually give Toyota a leg up on U.S. automakers?
On Tuesday, the Trump administration struck a trade deal with Japan, which would lower the threatened "Liberation Day" tariff rate from 24% to 15%. While that might not seem like that much of a decrease, cars are high-ticket items, so the new tariff duties could make thousands of dollars' difference to the end price consumers may have to pay.
Even though it appears Toyota cars made abroad will face tariffs going forward, the stock went up anyway. Not only that, but U.S. carmakers complained to the administration that the lower rates now put them at a disadvantage. This is because even American automakers import some of their steel and aluminum, which will now be tariffed at 50%, while other components, even for U.S.-manufactured cars, are imported from overseas, and will also be tariffed.
And while part of the Japan deal involves removing restrictions on U.S. exports to Japan, U.S. automakers don't appear to believe the deal will result in any new market share gains there.
Will U.S. automakers benefit from the trade negotiations?
Toyota is the second-largest carmaker in the world, both in terms of global and U.S. market share, so the all-important final tariff figure could have significant consequences for U.S. auto markets.
There are a lot of moving parts with regard to tariffs, however, as Toyota makes cars all over the world, with inputs and other sub-components also coming from various places. To further grasp the total consequences of the deal, investors in either Toyota stock or the "Big Three" U.S. carmakers should keep their ears out for more clarity when Toyota reports earnings in August.
Should you invest $1,000 in Toyota Motor right now?
Before you buy stock in Toyota Motor, 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 Toyota Motor 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 $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,942!*
Now, it’s worth noting Stock Advisor’s total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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