Joby Aviation (JOBY) Financial Report Summaries

Risks

• We may be unable to obtain relevant regulatory approvals for the commercialization of our aircraft or operation of our mobility service.
• Regulatory authorities may disagree with our view that integrating our service into the National Airspace System is possible without changes to existing regulations and procedures.
• If current airspace regulations are not modified to increase air traffic capacity, our business could be subject to considerable capacity limitations.
• Changes in government regulation could increase our operating costs or extend our certification timeline.
• We may be subject to security regulation that will increase our operating costs.
• We are subject to stringent U.S. export and import control laws and regulations, which may change. We may be unable to comply with these laws and regulations or U.S. government licensing policies, or to secure required authorizations in a timely manner.
• We will be subject to rapidly changing and increasingly restrictive laws, regulations and other obligations relating to privacy, data protection, and data security, which may be costly and difficult to comply with.
• The market for UAM has not been established with precision, is still emerging and may not achieve the growth potential we expect or may grow more slowly than expected.
• There may be reluctance by consumers to adopt this new form of mobility, or unwillingness to pay our projected prices.
• We may not be able to launch our aerial ridesharing service beginning in 2025, as currently projected.
• We may be unable to effectively build a customer-facing business or app.
• We may be unable to reduce end-user pricing at rates sufficient to drive expected growth for our service.
• Our competitors may commercialize their technology before us, or we may not be able to fully capture the first mover advantage that we anticipate.
• If we are unable to integrate our service with ground transportation services it may limit customer adoption and harm our business.
• Our reputation may be harmed by the broader industry, and customers may not differentiate our services from our competitors.
• Our prospects may be adversely affected by changes in consumer preferences, discretionary spending and other economic conditions that affect demand for our services, including changes resulting from the COVID-19 pandemic.
• If we are unable to obtain and maintain adequate facilities and infrastructure, including access to key infrastructure such as airports, we may be unable to offer our service in a way that is useful to passengers.
• Our aircraft utilization may be lower than expected due to weather and other factors.
• Our aircraft may fail to achieve performance expectations.
• We may not be able to produce aircraft in the volumes and on the timelines we project.
• Crashes, accidents or incidents of eVTOL aircraft or involving lithium-ion batteries involving us or our competitors could have a material adverse effect on our business, financial condition, and results of operations.
• We will initially rely on a single type of aircraft to support our commercial UAM business, which makes us vulnerable to design defects or mechanical problems.
• We depend on suppliers and service partners for raw materials, parts and components.
• Our aircraft may require maintenance at frequencies or at costs which are unexpected.
• The U.S. government may modify or terminate one or more of our existing contracts.
• We may be unable to grow our relationship with the U.S. government and the Department of Defense, which will limit our ability to operate prior to receiving an FAA certification of airworthiness.
• We conduct a portion of our business pursuant to U.S. government contracts, which are subject to unique risks.
• We have incurred significant losses since inception, we expect to incur losses in the future, and we may not be able to achieve or maintain profitability.
• We will need additional capital in the future, including to build high-volume manufacturing, and to develop a skyport network to support a high-volume service.
• We have broad discretion in how we use our assets, and we may not use them effectively.
• Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
• If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and our ability to comply with applicable regulations could be impaired.
• We may be unable to protect our intellectual property rights from unauthorized use by third parties.
• If conflicts arise between us and our strategic partners, our business could be adversely affected, or these parties may act in a manner adverse to us.
• We may invest significant resources in developing new offerings and exploring the application of our proprietary technologies for other uses and those opportunities may never materialize.
• Any material disruption in our information systems could adversely affect our business.
• If we or our third-party service providers experience a security breach, or if unauthorized parties otherwise obtain access to our customers’ data, our reputation may be harmed, demand for services may be reduced, and we may incur significant liabilities.
• Our intended initial operations are concentrated in a small number of metropolitan areas and airports which makes our business particularly susceptible to natural disasters, outbreaks and pandemics, growth constraints, economic, social, weather, and regulatory conditions or other circumstances affecting these metropolitan areas.
• We currently have subsidiaries located outside of the United States and plans for international operations in the future, which could subject us to political, operational and regulatory challenges.
• We are subject to risks arising from natural disasters and severe weather conditions and risks associated with climate change, including the potential increased impacts of severe weather events on our operations and infrastructure.
• We are subject to many hazards and operational risks that can disrupt our business, including interruptions or disruptions in service at our facilities, for which we may not be able to secure adequate insurance policies, or secure insurance policies at reasonable prices.
• We are dependent on our senior management team and other highly skilled personnel, including pilots and mechanics, and we may not be successful in attracting or retaining these personnel.
• Our business may be adversely affected by union activities.
• The price of our common stock has been and may continue to be volatile.
• We do not intend to pay cash dividends for the foreseeable future.
• If analysts do not publish research about our business or if they publish inaccurate or unfavorable research, our stock price and trading volume could decline.
• We may be subject to securities litigation, activist investors and short-selling campaigns, which are expensive and could divert management attention.
• Future resales of common stock may cause the market price of our securities to drop significantly.