Why Is Joby Aviation (JOBY) Stock Up Today?

Despite some rather violent price action mostly to the downside in the markets today, there are some outperformers investors are focusing on. Among today’s winners is Joby Aviation (NYSE:JOBY). Currently, JOBY stock has surged more than 12% on rather bullish price action in early afternoon trading.

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For investors in Joby, this move is much appreciated. Like many of its de-SPAC peers who went public via special purpose acquisition companies last year, JOBY stock has underperformed. From its initial reference price of $10 per share, JOBY stock had previously sunk as low as $3.61 in February. However, today’s move is signaling a comeback, bringing shares back toward the $6 level.

Much of this rather sharp selling pressure had been related to an accident earlier this year. The incident happened during a routine flight of the company’s first pre-production prototype in February and is still under investigation. Joby is also working with the Federal Aviation Administration (FAA) and Nation Transportation Safety Board (NTSB) on its future flight plans.

Today, though, a key update on test flights as well as otherwise positive earnings has JOBY stock moving higher. So, let’s dive into what investors are watching with these shares right now.

Why Is JOBY Stock Surging Today?

Today, Joby announced that it has resumed flight testing at its California pilot production facility with its second pre-production prototype aircraft. This testing appears to be going much better.

Overall, Joby has reported 38 test flights, with its prototypes reaching speeds of up to 90 miles per hour. The company has also already received approval to fly from the FAA and the U.S. Air Force. However, ongoing concerns around the recent accident have weighed on JOBY stock.

Now these headwinds may be rearview mirror, though. On top of resuming flights, Joby also reported earnings yesterday and they appear to have went over well. The company’s forward outlook has been emboldened by its resumption of flights and investors seem to like what they’re hearing

As with other story stocks, JOBY is among the higher-risk, higher-upside options in the market. That said, investors have good reason to focus on the name today.

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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.