The following discussion and analysis provides information that our management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. The discussion should be read together with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis includes forward looking statements that involve risks and uncertainties. Please see the section of this Quarterly Report on Form 10-Q titled "Special Note Regarding Forward-Looking Statements."
Overview
We have spent more than a decade designing and testing a piloted all-electric
aircraft that can take off and land vertically, while cruising like a
traditional airplane. The aircraft is quiet when taking off, near silent when
flying overhead and is designed to transport a pilot and four passengers at
speeds of up to 200 mph, with a maximum range of 150 miles on a single charge.
The low noise enabled by the all-electric powertrain will allow the aircraft to
operate around dense, urban areas while blending into the background noise of
cities. With more than 1,000 successful test flights already completed, and as
the first eVTOL aircraft developer to receive a signed, stage 4 G-1
certification basis to date, we believe our aircraft will be the first of its
kind to earn airworthiness certification from the
We do not intend to sell these aircraft to third parties or individual consumers. Instead, we plan to manufacture, own and operate our aircraft, building a vertically integrated transportation company that will deliver a convenient app-based aerial ridesharing service directly to end-users, with a goal to begin commercial passenger service in 2024. We believe this business model will generate the greatest economic returns, while providing us with end-to-end control over the customer experience to optimize for customer safety, comfort and value.
Since our inception in 2009, we have been primarily engaged in research and
development of eVTOL aircraft. We have incurred net operating losses and
negative cash flows from operations in every year since our inception. As of
The Merger
We entered into an Agreement and Plan of Merger (the "Merger Agreement") on
The Merger is accounted for as a reverse capitalization in accordance with
accounting principles generally accepted in
As a result of becoming a reporting company with the
All shares and per share amounts of Legacy Joby for all presented periods have been retrospectively adjusted using the exchange ratio that was established in accordance with the Merger Agreement (the "Exchange Ratio").
Key Factors Affecting Operating Results
For a more comprehensive discussion of the risks and uncertainties that could
impact the Company's business, please see the section entitled "Risk Factors" in
the Company's annual report on Form 10-K for the year ended
Development of the Urban Air Mobility ("UAM") market
Our revenue will be directly tied to the continued development of short distance aerial transportation. While we believe the market for UAM will be large, it remains undeveloped and there is no guarantee of future demand. We anticipate commercialization of our service beginning in 2024, and our business will require significant investment leading up to launching passenger services, including,
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but not limited to, final engineering designs, prototyping and testing, manufacturing, software development, certification, pilot training, infrastructure and commercialization.
We believe one of the primary drivers for adoption of our aerial ridesharing service is the value proposition and time savings offered by aerial mobility relative to traditional ground-based transportation. Additional factors impacting the pace of adoption of our aerial ridesharing service include but are not limited to: perceptions about eVTOL quality, safety, performance and cost; perceptions about the limited range over which eVTOL may be flown on a single battery charge; volatility in the cost of oil and gasoline; availability of competing forms of transportation, such as ground or air taxi or ride-hailing services; the development of adequate infrastructure; consumers' perception about the safety convenience and cost of transportation using eVTOL relative to ground-based alternatives; and increases in fuel efficiency, autonomy, or electrification of cars. In addition, macroeconomic factors could impact demand for UAM services, particularly if end-user pricing is at a premium to ground-based transportation alternatives or more permanent work-from-home behaviors persist following the COVID pandemic. We anticipate initial operations in selected high-density metropolitan areas where traffic congestion is particularly acute and operating conditions are suitable for early eVTOL operations. If the market for UAM does not develop as expected, this would impact our ability to generate revenue or grow our business.
Competition
We believe that the primary sources of competition for our service are
ground-based mobility solutions, other eVTOL developers/operators and
local/regional incumbent aircraft charter services. While we expect to be first
to market with an eVTOL facilitated aerial ridesharing service, we expect this
industry to be dynamic and increasingly competitive; it is possible that our
competitors could get to market before us, either generally or in specific
markets. Even if we are first to market, we may not fully realize the benefits
we anticipate, and we may not receive any competitive advantage or may be
overtaken by other competitors. If new or existing aerospace companies launch
competing solutions in the markets in which we intend to operate and obtain
large-scale capital investment, we may face increased competition. Additionally,
our competitors may benefit from our efforts in developing consumer and
community acceptance for eVTOL aircraft and aerial ridesharing, making it easier
for them to obtain the permits and authorizations required to operate an aerial
ridesharing service in the markets in which we intend to launch or in other
markets. In the event we do not capture the first mover advantage that we
anticipate, it may harm our business, financial condition, operating results and
prospects. For a more comprehensive discussion, please see the section entitled
"Risk Factors" in the Company's annual report on Form 10-K for the year ended
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