Peter Thiel's Flying Car Dream Nears Reality With Joby Aviation, But Joe Lonsdale Warns FAA 'Must Move Fast' As China Could Overtake US Amid Regulatory Delays

Venture capitalist Joe Lonsdale is sounding the alarm on Chinese competition in the flying car sector while showcasing American innovation through Joby Aviation Inc. JOBY, as regulatory delays threaten U.S. market leadership in the emerging electric vertical take-off and landing (eVTOL) industry.

What Happened: Lonsdale, co-founder of Palantir Technologies, featured Joby Aviation CEO JoeBen Bevirt on his podcast, demonstrating the company’s electric vertical takeoff and landing aircraft that reduces hour-long commutes to 10 minutes. The technology operates 100 times quieter than helicopters in hover mode and nearly silent during overflight.

Lonsdale referenced Peter Thiel‘s well-known quote on X, “We wanted flying cars, instead we got 140 characters,” noting that Bevirt took the remark “personally,” as Joby Aviation is now on the verge of delivering actual flying cars.

Bevirt emphasized aviation’s importance to U.S. exports, stating the technology could create thousands of jobs. However, Lonsdale warned that Chinese competitors are copying American designs while bypassing lengthy U.S. regulatory processes.

“They copy (or steal) American ingenuity, shortcut the regulatory process, and beat USA to market,” Lonsdale wrote on X, drawing parallels to biotechnology, where Food and Drug Administration delays allow Chinese companies to commercialize innovations first.

U.S. Department of Transportation, Secretary Sean Duffy and Federal Aviation Administration “must move fast — I’m glad to hear they’re doing so,” Lonsdale wrote on X.

Bevirt acknowledged that dozens of companies now build aircraft “almost identical” to Joby’s design, highlighting intense competition from China.

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Why It Matters: Joby recently secured $250 million from Toyota Motor Corp. to support certification and commercial production. JPMorgan analysts project the eVTOL market could reach $1 trillion long-term, though commercial service may begin in 12-18 months, with mass adoption expected in the mid-2030s.

The competitive landscape intensifies as Archer Aviation Inc. ACHR faces scrutiny from short-seller Culper Research over alleged misstatements about its eVTOL performance.

XPeng Inc. XPEV affiliate XPENG AEROHT partnered with Autoliv Inc. ALV to develop flying car safety solutions, demonstrating China’s aggressive push into the sector.

Price Action: Joby Aviation Inc.’s stock closed at $7.87 on Wednesday, down 1.99% for the day. In pre-market trading, the stock rose 1.27% to $7.97. Year to date, Joby shares are down 2.72%, while the stock has declined 26.52% since its public debut in 2020.

According to Benzinga Edge Stock Rankings, JOBY has an extremely poor valuation but benefits from strong momentum, with a positive price trend across short- to long-term timeframes. Click here to view the full stock breakdown.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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