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The new Trump administration's shift in regulations made Tuesday a profitable day for Joby Aviation (JOBY, Financial) stock, which grew by 10%. After Trump quickly cancelled several policies put in place by Biden, the stock market went up because Trump wanted to overturn a law that forced car makers to lessen their gas emissions.
President Trump plans to undo the executive orders that backed EV production while promising to kill both the Green New Deal and EV demand laws. After President Trump reversed key environmental policies, companies that make electric vehicles now face falling stock prices while their shareholders worry about possible changes to climate rules.
Joby Aviation finds its success, although from a separate direction compared to other companies. As Joby Aviation moves to make flying car taxis a reality, people who invest in the company think that a new government could get electric plane permits passed more quickly. Joby stands out as one of only a few players in the new eVTOL air taxi business because it focuses on helping cities cut down on traffic by giving people quick-flying alternatives.
The company hasn't made money yet, and its market value is in the billions. This is a trend for most EV and aerospace companies right now. While analysts recommend watching the company closely, they urge people who invest to be careful and only use this asset for potential growth, not as an essential investment in their portfolio.
This article first appeared on GuruFocus.