Joby Aviation's $500M Defense Investment: Leisure Air Taxi Developer Steps Into Military Tech

Joby Aviation has agreed to acquire Ohio-based Resonant Sciences for $500 million in cash and stock. This marks the electric air taxi developer's latest move to deepen its presence in the defense sector. Resonant Sciences' co-founder and CEO J. Micah North will lead the new division, which will incorporate Joby's defense projects, including turbine-electric and hydrogen-electric aircraft development, and autonomy technology. The new defense division will allow the rest of Joby Aviation to focus on certifying, manufacturing, and launching its electric air taxi. Resonant Sciences has reported $100 million in trailing 12-month revenue and access to classified U.S. government programs. The company's radio frequency and sensing tech complements Joby's own eVTOL aircraft. Joby has previously employed this revenue-generation-through-acquisition strategy. Developing, certifying, and mass-producing eVTOLs is a costly, multi-year process that excites shareholders until they start questioning when revenue will materialize. Joby went public in 2021 through a merger with a blank-check company. It has assuaged investors by finding near-term revenue sources. Last year, Joby acquired Blade Air Mobility's helicopter rideshare business for approximately $125 million. This acquisition provided Joby with instant access to a network of 12 terminals in key markets like New York City, including bases at John F. Kennedy International Airport and Newark Liberty Airport, as well as terminals on both sides of Manhattan and Wall Street. It also delivered much-needed revenue, with the company reporting $38.6 million in revenue in the second quarter, $36.2 million of which came from Blade.

This strategic acquisition in the defense sector reinforces Joby's growth ambitions in both leisure and military markets. Markets are assessing whether this move will enhance the company's long-term earnings potential. Particularly, the focus on military applications for electric air vehicles could boost Joby's shareholder value in the future.