Maybe you already know Joby Aviation (NYSE:JOBY) is developing electric aircraft with vertical takeoff and landing, also known as flying cars or flying taxis. But Joby Aviation’s growth story includes more than just making flying taxis. The company is also an innovator, and Joby Aviation stock gives investors access to several niche areas with high-flyer potential.

Joby Aviation is a leading player in an industry that is already showing a remarkable growth trajectory. According to reports, the global flying car market reached $552.38 million last year.

But that’s just the beginning, as this market is expected to grow from $2.2 billion in 2024 to a whopping $1.533 trillion by 2040. That would represent a compound annual growth rate (CAGR) of 50.5% during the forecast period from 2024 to 2040.

Just think of the many possible uses of flying cars. In cities, for example, these vehicles could significantly reduce commuting times. They could also conveniently take people to or from airports.

Although Joby Aviation makes flying cars, it’s probably a more diversified business than you’d expect. So buckle up and get ready for liftoff as we dive into the fascinating areas Joby Aviation hopes to explore and capitalize on.

Joby Aviation pursues novel flight technology

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There is a lot of excitement around autonomous or self-driving vehicles. But what about autonomous or self-flying vehicles? This is a futuristic industry that Joby Aviation is targeting through its acquisition of the autonomous aircraft developer. Xwings Division of autonomy.

As a result, Joby Aviation will have access to a “diverse group of engineers, researchers and technologists from Xwing.” They will help Joby Aviation develop cutting-edge autonomous flight technology for potential partnership with the U.S. Department of Defense.

Meanwhile, Joby Aviation is working to advance clean energy flight options. In particular, the company is pursuing a hydrogen-electric flight program and has even completed a 523-mile test flight of a hydrogen-electric air taxi demonstrator “where water was the only byproduct.”

Joby Aviation said its hydrogen-electric program is supported by the company’s “partnership with the U.S. Air Force’s Agility Prime program,” meaning Joby Aviation is receiving government support in its quest to advance decarbonized aviation.

The Air Force’s Agility Prime program is described as a “vertical lift program” that works directly with commercial electric vertical takeoff and landing (eVTOL) companies like Joby Aviation. This program has been in place since April 2020.

The Agility Prime program enables collaboration between the U.S. military and eVTOL industry leaders such as Joby Aviation. Jacob Wilson, (acting) Division Chief of AFWERX Agility Prime, explained the program’s support of hydrogen-focused initiatives:

“Agility Prime has been very supportive of the development and testing of hydrogen-powered aircraft as it aligns with the program’s goals of advancing breakthrough vertical lift technologies and meeting the Department of Defense’s broader operational energy goals of energy substitution and diversification and reducing energy requirements.”

Joby’s 523-mile hydrogen-powered test flight shows the company’s commitment to advancing this type of air travel, so look out for more collaborations between the U.S. Armed Forces and Joby Aviation.

Software in the air

Source: T. Schneider / Shutterstock.com

Joby Aviation is also expanding into the software business. However, this is not just ordinary software.

According to reports, the Federal Aviation Administration (FAA) approved Joby Aviation to use a set of software tools called ElevateOS, which Joby developed itself. The purpose of ElevateOS is to “enable rapid, on-demand air taxi operations.”

As you might expect, this software suite includes tools for pilots, but ElevateOS also includes “operations and schedule management software” and a “mobile-first driver app.”

It even includes what Joby Aviation calls an “intelligent matching engine,” which is similar to a ride-sharing app in that it “matches passengers with available aircraft.” I actually wouldn’t be surprised if “intelligent matching engines” become commonplace in air taxi technology one day—and Joby Aviation could be first to market with this technology.

Joby Aviation stock is attractive below $10

Source: T. Schneider / Shutterstock.com

Just take a look at all the aviation-related ideas that Joby Aviation is pursuing and pushing today. The bottom line is that Joby Aviation doesn’t just build flying taxis all day.

In addition, investors should not underestimate the importance of a potential Air Force contract for Joby Aviation. This could make Joby a serious, recurring contractor for the government.

In addition, Joby Aviation’s software could become a significant source of revenue in a future where air taxi services are popular. Just consider the possibility of ElevateOS setting the gold standard for flying car software packages. There will be competition in this space at some point, but Joby would potentially be a pioneer.

All in all, the market doesn’t seem to fully appreciate Joby Aviation’s full value as an innovator in the aviation industry. That’s OK, because it means you can still buy Joby Aviation stock for under $10. That’s a great opportunity, so feel free to buy a few Joby shares in anticipation of $10 and most likely much higher prices.

On the day of publication, David Mnadel had (neither directly nor indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publishing policies.

At the time of publication, the responsible editor had neither directly nor
indirectly) positions in the securities mentioned in this article.