2 Electric Air Taxi Stocks With Short Squeeze Potential

JOBY and ACHR have been red-hot this quarter

Rockets and space, and the skies have become en vogue on Wall Street as 2024 winds down. Air taxis, or eVTOL (electric vertical takeoff and landing) aircraft makers, started the year deep in penny stock territory but have generated some buzz lately. 

Joby Aviation Inc (NYSE:JOBY) is up 5.6% at $8.29 at last glance, after the company yesterday announced an additional $500 million investment from Toyota Motor (TM). Joby also received a Part 141 certificate from the Federal Aviation Administration (FAA) for its flight academy.

JOBY is fresh off a Nov. 29, 52-week high of $9.32 and best monthly win on record, with the 20-day moving average containing its subsequent pullback. The security added 70% in the last three months alone, and now boasts a 24.8% year-to-date lead.

Sector peer Archer Aviation Inc (NYSE:ACHR) is enjoying a halo lift, up 2.7% at $6.94 at last glance. ACHR has followed a similar trajectory, breaking out of penny stock territory to hit a Nov. 29, three-year high of $9.83 and secure its best month ever. December has been rough, though, with the shares gapping 23.7% lower on Monday and 7.5% yesterday in the wake of a C-suite shakeup. Longer term, the stock is up 129% this quarter, and 13% in 2024. 

Both equities are prime short squeeze candidates. Short interest accounts for 14.5% and 26.5% the total available float for JOBY and ACHR, respectively. Should this pessimism start to unwind, both equities could extend their rallies.

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