Tesla Shareholder Set to Invest in Joby Aviation

Returning investment firm and Tesla stockholder, Baillie Gifford is set to invest $180 million in Joby Aviation, an electric aircraft maker. This announcement comes on the heels of Joby Aviation securing a $55 million contract extension to provide up to nine air taxis to the U.S. Air Force. This deal marked Joby's first revenue-generating operation, and it appears that the electric aircraft manufacturer is quickly gaining momentum in the market.

Unlike other electric vertical takeoff and landing (eVTOL) manufacturers, Joby's business model is similar to a rideshare app. Joby intends to operate its fleet of air taxis and offer rides to customers. This approach is different from its competitors, who are planning to sell their aircraft to airlines and logistics companies. Baillie Gifford sees the potential in Joby's business model and the transformative impact the company can have on the industry.

Once certified, Joby will enter a crowded market with dozens of other developers, including Archer Aviation and Vertical Aerospace Ltd, who are all competing to revolutionize urban transportation. Joby is positioning itself to be a significant player in the market, and with Baillie Gifford's investment and its recent contract with the U.S. Air Force, the company is showing that it means business. With nearly $1 billion in cash and securities at the end of Q1, Joby has the financial resources to pursue its ambitious goals and become a game-changer in the aviation industry.

About Ballie Gifford

Baillie Gifford is a UK-based investment management firm that was founded in 1908. The company is privately owned and manages assets for a range of clients, including pension funds, endowments, and other institutional investors. Baillie Gifford is known for its long-term investment approach, with a focus on investing in transformational companies that can disrupt industries and drive growth.

Baillie Gifford manages a range of investment products, including equity, fixed income, multi-asset, and private markets. The firm has a global presence and invests in companies across the world, with a particular focus on the technology, healthcare, and consumer sectors. Some of Baillie Gifford's notable investments include Amazon, Tesla, and Alibaba, among others.

Baillie Gifford has a reputation for being a forward-thinking and innovative investment firm, and its investment strategy has generated strong returns for its clients over the years. The firm has won numerous awards for its investment performance, including being named Investment Manager of the Year at the 2020 Professional Pensions UK Pensions Awards.