Q1 2024 Earnings Summary
- Strong partnership with Toyota enhances manufacturing capabilities and scaling plans, with Toyota executives actively supporting Joby's transition from development to scaling phases.
- Positive progress on FAA certification, including the G1 certification basis being signed and published, and continued submission of test plans, demonstrating advancement toward commercialization.
- Accelerating commercialization opportunities in the UAE, with strong support from government agencies and regulatory bodies, potentially enabling Joby to begin international operations sooner.
- Uncertainty in FAA Certification Timeline: The company acknowledges that the G1 issue paper from the FAA came with more prescriptive details, leading to additional updates needed to the means of compliance and area-specific certification plans. This indicates potential delays or uncertainties in the certification process, which could affect their ability to commence operations as planned.
- Lack of Specific Timelines for Conforming Aircraft: When asked about the timeline for rolling out the first conforming aircraft and transitioning it with a pilot on board, the company did not provide specific timelines, only stating that they are making progress and are "well on track" with their roadmap. This lack of specificity may suggest potential delays or challenges in their development schedule.
- Unclear Commercialization Strategy and Economics: The company is maintaining flexibility in its commercialization model, with possibilities of both operating aircraft themselves and selling them to customers like the DoD. Additionally, they are unable to provide specific details on pricing, routes, and operational economics. This could indicate uncertainty in their business model and potential challenges in generating revenue.
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First Commercial Service Location
Q: Will your first commercial mission be in the UAE or the U.S.?
A: We see two exciting paths forward for our first commercial service, both in the U.S. (New York and L.A. in partnership with Delta) and in the UAE, with significant support from the GCAA to begin commercial service next year. -
Exclusivity in UAE Agreement
Q: What is the level of exclusivity in your UAE agreement?
A: We have a 6-year exclusive agreement for providing air taxi service in the Emirate of Dubai, granted by the RTA, which regulates air taxis. This partnership has been in development since 2017–2018, and we're pleased with the progress we're making. -
FAA Certification Progress
Q: Can you share timelines on FAA certification, given possible delays?
A: We're excited about our engagement with the FAA and the progress on all fronts. We've focused on three key areas: the signing of the G1 issue paper with more prescriptive compliance details, continued submission of test plans covering equipment and system levels, and upgrading our test assets to execute on Stage 4 in the second half of the year. -
Partnership with Toyota
Q: Any updates on your relationship with Toyota regarding manufacturing?
A: Our partnership with Toyota has been incredibly valuable. They've had team members on-site in California since 2019, and their expertise is invaluable as we plan our manufacturing expansion in Marina. We're optimistic about our future alongside Toyota as we shift from development to scaling. -
Go-to-Market Strategy in UAE
Q: What is your business model for the Middle East operations?
A: In Dubai, we're planning to operate the aircraft ourselves, in line with agreements with the RTA. This will resemble our commercial operations in the U.S. However, we're flexible in our commercialization approach; for customers like the DoD, we may pursue aircraft sales with ongoing maintenance support. We'll maintain this flexibility as we expand over the next 12–18 months. -
Electric Storage Certification
Q: What's the FAA's feedback on your electric storage qualification plans?
A: The FAA's feedback has been very positive. We've been working with them for multiple years on test plans for our electrical system, based on actual flights over the past four years. Our investments in battery facilities reflect our confidence in these plans. -
Differences in Aircraft Production
Q: How do production aircraft differ from previous prototypes?
A: The differences are evolutionary, based on four years of data. We've made improvements to electronics and actuation systems to expand the flight envelope (e.g., temperature, vibration) and enhance reliability. The production aircraft are built under our production line and quality management system, progressing us towards a production certificate. -
Pilot Supply and Training
Q: How are you addressing the pilot supply challenges?
A: We're not concerned about pilot shortages. We'll utilize an initial cadre of experienced pilots who prefer being home every night. We're also building a pipeline through the Joby Aviation Academy with a Part 141 program, syncing in time to scale our service. Our solution can also help the broader Part 121 operators as pilots may move on or prefer our favorable lifestyle.