Santa Cruz, CA – August 4, 2025 – Joby Aviation (NYSE: JOBY) electrified the market today, with its stock surging 16.75% to close at $20.03 following the announcement of a transformative $125 million acquisition of Blade Air Mobility’s (NASDAQ: BLDE) passenger business. This strategic move positions Joby at the forefront of the urban air mobility (UAM) revolution, providing immediate infrastructure, routes, and a proven customer base as it prepares for its highly anticipated commercial launch in 2026.
Why the Market is Buzzing: Deal Details
Joby’s acquisition targets the core of Blade’s operations – its U.S. and European passenger air taxi services. For up to $125 million (a mix of cash and stock, with $35 million tied to performance milestones), Joby gains:
- 12 Urban Terminals & Lounges: Including prime NYC locations at JFK Airport, Newark Liberty Airport, Manhattan’s West Side, East Side, and Wall Street.
- Established Routes & 50,000+ Passengers: Leveraging Blade’s network that flew over 50,000 passengers in 2024 on popular routes like NYC to the Hamptons and Newark Airport transfers.
- The Blade Brand & Operating Expertise: Blade CEO Rob Wiesenthal will lead the passenger business as a wholly-owned Joby subsidiary.
- Medical Partnership: While Blade’s organ transport unit (rebranding as Strata Critical Medical) remains separate, Joby becomes its preferred eVTOL partner, showcasing future high-value applications.
Beyond Helicopters: The Path to eVTOL Domination
This isn’t about helicopters. It’s about accelerating Joby’s electric future. The acquisition provides the crucial launchpad Joby needs:
- Instant Market Access & Infrastructure: Securing vertiport locations in dense urban centers like NYC bypasses years of regulatory challenges. Joby gains operational hubs approved by the FAA’s Advanced Air Mobility division.
- Proven Demand & Seamless Transition: Blade’s 50,000+ annual fliers represent a ready-made customer base. Joby plans a phased transition: initially operating helicopters, then gradually replacing them with its quiet, zero-emission eVTOL aircraft as they achieve FAA certification.
- Reduced Costs & De-Risked Rollout: Leveraging Blade’s existing operations drastically cuts customer acquisition costs and infrastructure investment needs, making Joby’s path to commercialization faster and more capital-efficient.
- Software Integration: Joby’s proprietary ElevateOS software, designed for high-frequency eVTOL operations, will be integrated into Blade’s systems, optimizing efficiency and the passenger experience from day one.
Market Roars Approval: Stock Performance & Technicals
The market reaction was emphatic:
- JOBY: Skyrocketed 16.75% to $20.03, nearing its all-time high of $20.45 set earlier in the day. Volume surged to 37.3 million shares, far exceeding the 29.9M average. Year-to-date gains now stand at a staggering 146.43%, dwarfing the S&P 500’s 7.26%.
- BLDE: Soared 28.97% to $4.875 as investors welcomed the strategic shift towards its profitable medical business (Strata Critical Medical).
Technical indicators reinforce the bullish sentiment. Joby is trading above key moving averages, with strong momentum (Price Momentum score: 4.08 per InvestingPro) and robust liquidity (Current Ratio: 17.72). While short interest remains notable (~18%), today’s powerful volume surge suggests covering may be contributing to the upside.
The Road Ahead: Certification, Dubai, and Beyond
The Blade deal strategically positions Joby for its critical near-term milestones:
- FAA Certification: CEO JoeBen Bevirt confirmed Joby remains “on track to begin FAA Type Inspection flight testing early next year” – the crucial final phase before commercial service approval.
- Dubai Launch: Joby reiterated plans to carry its first paying passengers in Dubai in late 2025 or early 2026. The Blade acquisition provides operational expertise to support this global flagship launch.
- Defense Expansion: Last week’s collaboration with L3Harris to develop hybrid military VTOLs signals diversification beyond passenger transport, adding another potential revenue stream.
Risks Remain: A High-Potential, High-Stakes Bet
Despite the euphoria, investors must acknowledge the risks:
- Regulatory Hurdles: FAA (and other global agencies) certification timelines are complex and can slip. Any significant delay would impact commercialization plans.
- Profitability: Neither Joby nor Blade’s passenger unit is currently profitable. Scaling operations and achieving positive unit economics with eVTOLs is unproven at scale.
- Execution Risk: Integrating Blade’s operations and successfully transitioning customers to a new type of aircraft is a significant operational challenge.
- Valuation: At a market cap exceeding $16.8B, Joby trades at extremely high multiples (e.g., Price/Sales > 111,000x based on minimal trailing revenue). This prices in near-perfect execution.
Analyst Outlook: Cautious Optimism Prevails
Wall Street sentiment is mixed but leans positive long-term:
- Short-Term (2025): Analysts cite high volatility but see potential for significant upside ($9-$12 range) if Dubai launches and FAA progress continues. A successful commercial debut could propel it higher.
- Long-Term (2030+): Optimistic projections see massive potential ($20+) if Joby captures a leading share of the projected trillion-dollar eVTOL market. Bearish algorithmic models, however, project steep long-term declines, highlighting the binary nature of the bet.
A Pivotal Moment for Urban Air Mobility
Joby Aviation’s acquisition of Blade’s passenger business is more than just a headline-grabbing deal; it’s a masterstroke in accelerating real-world deployment. By acquiring established infrastructure, routes, customers, and operational expertise, Joby significantly de-risks its path to commercializing electric air taxis. While regulatory approval and achieving profitability remain formidable challenges, today’s surge in JOBY stock reflects strong investor conviction that Joby is pulling ahead in the race to make urban air mobility a reality. The eyes of the transportation world will now be firmly fixed on Joby’s progress towards certification and its inaugural passenger flights in Dubai and New York.