Up 27% yesterday, but I think my favorite growth stock under $10 still has room to run

In the UK, I would say maybe Games Workshop my favorite growth stock. Or The Ashtead Groupor maybe even Greggs. Actually, I'm undecided, so I'm happy to hold all three in my portfolio.

Across the pond, there are too many to list, as America is the innovation capital of the world. But if I had to pick one fun share under $10 today, I would find it Joby Aviation (NYSE: JOB).

That's why it rose almost 28% yesterday (October 2) to reach $6.14.

Cash injection

For those who don't know, Joby is in the business of selling small electric aircraft that can take off and land (or eVTOLs). These near-silent air taxis can take off like a helicopter but fly like an airplane, reaching speeds of 200mph.

Its first two pre-production aircraft completed more than 1,500 flights and 33,000 miles. In 2023, it completed the first taxi demonstration flight in New York City, flying from the Manhattan Downtown Heliport over the Hudson River.

yesterday, Toyota Motors announced that it would invest an additional $500m in the company. It will purchase two equal parts of the stock to support the certification and commercial production of the aircraft.

This takes Toyota's total investment to $894m and extends Joby's financial path to 2026. Once completed, Toyota will own about 22% of the remaining shares.

Other supporters include Uber, Scottish Mortgage Investment Trustagain Delta Air Lines. Institutional ownership is strong at more than 40%, which suggests confidence in the company's long-term prospects.

Ted Ogawa, CEO of Toyota Motor North America, said:We share Joby's vision that sustainable aviation will be at the heart of alleviating today's ongoing travel challenges.”

A powerful partner

In addition, Toyota helps in the design of the aircraft, providing the power train and equipment. It has been sharing information about the Toyota Production System, which is a key factor in helping the Japanese company become the world's best-selling car company.

Japan is a promising market for eVTOLs because of its dense urban areas, such as Tokyo and Osaka. I would imagine having a Toyota in its corner wouldn't hurt if you navigated the regulatory approval process there.

A high risk stock

Led by founder JoeBen Bevirt, Joby aims to launch its Uber-like service in the US in 2025, and then in Dubai (where it has obtained an exclusive license) in early 2026.

However, at present, it is not generating income and full certification is yet to be achieved. It is in the fourth out of five stages of the process, which means it still has important things to come. So the regulatory risks remain, as well as the challenges of scaling production (although Toyota is helping here).

The company says its aircraft can travel 150 miles on a single battery, although the heliport infrastructure will need to be built to support this.

Part of my investment thesis is that Joby will get the first profit by choice Uber operating system. But what if the ride-hailing giant opened the field to rival drivers, as it is currently doing with private taxi companies? If so, that could change the competitive landscape.

Anyway, I'm excited about the power. Like driverless cars, The Jetsons-style air travel goes from science fiction to reality. Morgan Stanley predicts that this emerging market will become a multi-billion dollar opportunity in the next few decades.

Investing in Joby stock gives me an opportunity to get in early.