Joby Aviation is no longer betting everything on flying taxis. The company announced in August 2026 that it was acquiring Resonant Sciences, a fast-growing defense technology company with more than $100 million in trailing 12-month revenue, marking a significant strategic pivot that reduces its dependence on a single path to profitability.

Why Is Joby Adding a Defense Business?

For years, Joby has been synonymous with one ambitious vision: electric vertical takeoff and landing (eVTOL) aircraft, commonly called flying taxis. These all-electric aircraft can take off vertically like helicopters, fly forward like planes, seat four passengers plus a pilot, and travel up to 100 miles on a single charge. But the path from prototype to commercial operation has been long and uncertain, dependent on Federal Aviation Administration (FAA) certification and market adoption.

The Resonant Sciences acquisition changes that equation. By bringing a defense technology business with established revenue into the fold, Joby gains a more stable income stream while continuing to pursue its air taxi ambitions. This dual-track approach reduces the company's vulnerability to delays or setbacks in the eVTOL certification process, a risk that has weighed on investor sentiment for years.

How Close Is Joby to FAA Certification?

Joby's progress toward FAA type certification has accelerated noticeably. As of July 31, 2026, the company had completed 20 percent of its work in Stage 5, the fifth and final "Show & Verify" stage of the FAA's certification process, while the FAA itself had completed about 10 percent of its work. For context, Joby was roughly two-thirds of the way through Stage 4 at the same time the previous year, meaning the company has made significant progress in 12 months.

This milestone matters because FAA certification is the regulatory gateway that will allow Joby to operate commercial air taxi services. Without it, the company's aircraft remain grounded, no matter how advanced the technology. The fact that both Joby and the FAA are actively working through the final certification stage suggests that commercial operations could be within reach in the coming years, though no specific timeline has been announced.

What Makes the Air Taxi Market So Valuable?

The potential market opportunity is enormous. Analysts at Morgan Stanley once estimated that urban air mobility could become a $9 trillion market opportunity by 2050, with human transportation accounting for roughly $3.8 trillion of that total. In their analysis, flying taxis could generate 18 times the profit of a ride-hauling vehicle, largely because they can complete more trips per day and travel more miles per trip.

That kind of upside explains why investors have been willing to overlook Joby's current financial challenges. The company trades at roughly 62 times sales, a valuation that leaves little room for slip-ups or surprise delays. But if the air taxi industry becomes even a fraction as large as Morgan Stanley predicted, Joby's current valuation could eventually look small.

Steps to Understanding Joby's Business Strategy

• eVTOL Aircraft Development: Joby is building electric vertical takeoff and landing aircraft designed to carry four passengers plus a pilot up to 100 miles per charge, positioning itself as a core player in urban air mobility.
• FAA Certification Progress: The company has completed 20 percent of Stage 5, the final certification stage, with the FAA having completed about 10 percent of its own work as of July 31, 2026.
• Defense Business Diversification: The acquisition of Resonant Sciences, a defense contractor with over $100 million in trailing 12-month revenue, provides stable revenue and reduces dependence on air taxi commercialization alone.
• Market Timing: Joby is positioning itself to capture a potential $9 trillion urban air mobility market by 2050, with human transportation representing roughly $3.8 trillion of that opportunity.

What Are the Risks?

Despite the progress and strategic diversification, Joby remains a speculative investment. The company's high valuation of 62 times sales means that any significant delay in FAA certification, manufacturing ramp-up, or market adoption could pressure the stock. Additionally, the air taxi industry itself is unproven at commercial scale; no company has yet demonstrated that passengers will regularly pay for flying taxi services in sufficient numbers to justify the investment.

The Resonant Sciences acquisition helps mitigate some of this risk by providing an alternative revenue source, but it does not eliminate the fundamental uncertainty around whether urban air mobility will become the transformative transportation industry that Joby and its investors envision.

For growth investors willing to accept significant risk, Joby represents a compelling speculative opportunity. The combination of advancing FAA certification, a growing defense business, and a potentially enormous market opportunity creates a scenario in which the company's current valuation could eventually prove conservative. But that outcome is far from guaranteed, and investors should approach the stock with eyes wide open to both the upside potential and the downside risks.