Joby Aviation (JOBY) risk factors, 2025 10-K

Risks Related to Our Business and Industry

1. 01We may be unable to obtain relevant regulatory approvals for the commercialization of our aircraft or operation of our mobility service, either in the United States or in foreign markets
2. 02Regulatory authorities may disagree with our view that integrating our service into the National Airspace System is possible without changes to existing regulations and procedures
3. 03If current airspace regulations are not modified to increase air traffic capacity, our business could be subject to considerable capacity limitations
4. 04Changes in government regulation could increase our operating costs or extend our certification timeline
5. 05We may be subject to security regulation that will increase our operating costs
6. 06We 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
7. 07The 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
8. 08Our growth is highly dependent upon consumer adoption of an entirely new form of mobility offered by eVTOL aircraft and the UAM market. If consumers do not adopt this new form of mobility or are not willing to pay the prices we project for our services, our business may never materialize
9. 09We may face delays in launching our commercial service
10. 10We may be unable to effectively build a customer-facing business or app
11. 11We may be unable to reduce end-user pricing at rates sufficient to drive expected growth for our service
12. 12Our competitors may commercialize their technology before us, or we may not be able to fully capture the first mover advantage that we anticipate
13. 13If we are unable to integrate our service with ground transportation services it may limit customer adoption and harm our business
14. 14Our reputation may be harmed by the broader industry, and customers may not differentiate our services from our competitors
15. 15Our 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
16. 16If 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
17. 17Our aircraft utilization may be lower than expected due to weather and other factors
18. 18Our aircraft may fail to achieve performance expectations
19. 19We may not be able to produce aircraft in the volumes and on the timelines we project
20. 20Crashes, accidents or incidents of eVTOL and other aircraft could have a material adverse effect on our business, financial condition, and results of operations
21. 21We 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
22. 22We depend on suppliers and service partners for raw materials, parts and components
23. 23Our aircraft may require maintenance at frequencies or at costs which are unexpected
24. 24The U.S. government may modify or terminate one or more of our existing contracts
25. 25We may be unable to grow our relationship with the U.S. government and the Department of Defense
26. 26We conduct a portion of our business pursuant to U.S. government contracts, which are subject to unique risks

Risks Related to Our Finances and Operations

1. 27We 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
2. 28We will need additional capital in the future, including to build high-volume manufacturing, and to develop a vertiport network to support a high-volume service
3. 29We have broad discretion in how we use our assets, and we may not use them effectively
4. 30Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
5. 31If 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
6. 32We may be unable to protect our intellectual property rights from unauthorized use by third parties
7. 33If 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
8. 34While our primary focus is on the design, manufacture and operation of our eVTOL aircraft and the related aerial mobility service, we may invest significant resources in developing new technologies, services, products and offerings. However, we may not realize the expected benefits of these investments
9. 35Any material disruption in our information systems could adversely affect our business
10. 36If 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
11. 37Our concentration in large metropolitan areas and heavily trafficked airports also makes our business susceptible to an outbreak of a contagious disease, both due to the high volume of travelers flying into and out of such airports and the ease at which contagious diseases can spread through densely populated areas
12. 38We 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
13. 39We 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
14. 40risk of closure due to zoning and permitting issues. Destruction or our inability to use any of our facilities for a prolonged period of time could materially impact our ability to meet our projected timelines
15. 41We 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
16. 42We 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
17. 43Our business may be adversely affected by union activities
18. 44The price of our common stock has been and may continue to be volatile
19. 45We do not intend to pay cash dividends for the foreseeable future
20. 46If analysts do not publish research about our business or if they publish inaccurate or unfavorable research, our stock price and trading volume could decline
21. 47We may be subject to securities litigation, activist investors and short-selling campaigns, which are expensive and could divert management attention
22. 48Future resales of common stock may cause the market price of our securities to drop significantly
23. 49If we are deemed to be an investment company under the Investment Company Act of 1940, our results of operations could be harmed