$FMKT: Why Deregulation Has Joby Aviation (JOBY) Flying High in The Free Markets ETF
Description
Imagine skipping rush-hour gridlock by boarding a quiet electric aircraft that lifts off from a downtown rooftop. Within minutes, you’re across the city. That vision is no longer science fiction—it’s Joby Aviation’s reality. It’s also a story about how deregulation can open new frontiers, which is why The Free Markets ETF (FMKT), the exchange-traded fund I launched with 3 other partners in June which is designed to capitalize on deregulation’s economic tailwinds, holds Joby in its portfolio.[^1]
Joby Aviation (JOBY), based in California, builds all-electric vertical takeoff and landing (eVTOL) aircraft—essentially flying taxis that operate with zero emissions and minimal noise. Each carries a pilot and four passengers, flying up to 200 mph.[^2] The goal is to make fast, sustainable urban air travel affordable and convenient. Yet innovation alone isn’t enough; the airspace is governed by complex rules. For years, aviation regulation made it nearly impossible for newcomers to compete. That landscape is now shifting.
A Regulatory Shift That Opened the Sky
The biggest barrier for eVTOL companies has been government approval. In 2024, Congress passed the FAA Reauthorization Act, which explicitly directed the FAA to prioritize integrating advanced air mobility—like Joby’s air taxis—into the national airspace.[^3] The legislation ordered the FAA to speed certification for electric and hydrogen aircraft, modernize infrastructure for “vertiports,” and prepare for commercial operations.
Soon after, the FAA introduced a Special Federal Aviation Regulation (SFAR) establishing pilot training and operating requirements for eVTOL air taxis. Released ahead of schedule in late 2024, it effectively gave Joby a clear path to launch passenger service once its aircraft receives final type certification.[^4]
In 2025, the federal government went further. The FAA created a pilot program to accelerate air-taxi deployment through limited early-stage commercial trials in several U.S. cities.[^5] Joby hailed the move, calling it “a critical step” in scaling service. The market agreed—Joby’s stock rose roughly 5 percent on the news, signaling investors’ confidence that regulators were now clearing, not blocking, the runway for innovation.[^5]
This momentum aligns neatly with FMKT’s strategy. The ETF seeks companies that thrive when bureaucratic constraints loosen—where policy tailwinds, rather than subsidies, power growth. In transportation, deregulation can be transformative, turning once-theoretical markets into viable industries.[^1]
Global Competition Spurs Deregulation
The U.S. shift is also a competitive necessity. Nations such as China, India, and the UAE are already piloting eVTOL services and may begin passenger flights as early as 2026.[^6] American policymakers recognized the risk of falling behind if they kept the regulatory brakes on. The new rules and pilot programs show Washington intends for domestic innovators like Joby to lead, not follow, in this next aviation era.
For investors, these moves illustrate a broader truth: regulation isn’t static. Policy evolution can unlock value when it reduces barriers to entry. In managing the fund, my partners and I specifically target such inflection points—industries where government oversight shifts from restricting to enabling enterprise. Few examples capture that theme more vividly than Joby’s ascent.
Execution Meets Opportunity
Joby has spent over a decade refining its technology. In 2023, it delivered its first eVTOL to the U.S. Air Force for evaluation under the Agility Prime program, underscoring the aircraft’s readiness for real-world missions.[^7] Strategic partners have followed: Toyota committed up to $500 million to help manufacture Joby’s aircraft, and Delta Air Lines invested to integrate Joby’s taxis into airport transfers.[^8]
Then came an even bolder step. In 2025, Joby agreed to acquire Blade Air Mobility’s passenger-transport business for up to $125 million, gaining instant access to Blade’s heliport network in New York and other cities.[^9] Analysts viewed this as “de-risking” Joby’s path to launch by providing immediate infrastructure and customers used to short-haul air travel.
Each regulatory milestone has been matched by operational progress. Joby completed the first piloted eVTOL flight between public airports in California in 2025, and final assembly began on its FAA-conforming aircraft for certification testing scheduled in early 2026.[^10] Once type certification is secured, Joby plans initial commercial routes in Los Angeles and New York. With the FAA’s new pilot program, limited passenger flights could even precede full certification.[^5]
These steps reinforce FMKT’s thesis: deregulation doesn’t just remove barriers—it signals credibility. By earning regulators’ trust, Joby has moved from a speculative startup to a near-term operator. The ETF’s roughly 2 percent allocation to JOBY reflects that conviction.[^11]
The Opportunity and the Caveats
Joby’s progress has made air taxis feel tangible, yet investors should temper optimism with realism. Deregulation doesn’t eliminate oversight. Safety will remain paramount, and any incident could slow adoption or prompt new rules. Joby’s certification process, while advancing, has already faced schedule extensions as the FAA refined standards.[^12]
Infrastructure is another bottleneck. Vertiports and charging hubs must be approved, financed, and built—often city by city. Local zoning and community acceptance will determine how fast networks expand.[^3] Public trust is equally critical. Even if regulators sign off, passengers must feel safe boarding electric aircraft. Early mishaps could set the industry back years.[^13] Competition looms, too: multiple U.S. startups and international players are racing toward the same goal. The sector’s eventual winners will depend on execution, reliability, and brand trust.
Still, the policy direction remains clear. Government agencies that once moved cautiously are now pushing to enable advanced air mobility. For FMKT, Joby exemplifies how deregulatory momentum can catalyze innovation across entire sectors. When policymakers pull back outdated restrictions, markets often respond with investment, job creation, and technological progress.
A Broader Lesson for Investors
Investing through FMKT offers exposure not just to Joby, but to a larger principle: economic freedom can unleash innovation. The fund identifies companies positioned to benefit when governments streamline rules or modernize outdated frameworks. In energy, finance, or aviation, the pattern repeats—when markets open, entrepreneurs move quickly to fill the void.
Joby’s rise under a more flexible regulatory regime embodies that theme. Whether its aircraft soon carry passengers across Los Angeles or Manhattan, or face new challenges along the way, its trajectory already demonstrates what can happen when rulebooks catch up to technology. Deregulation hasn’t guaranteed Joby’s success, but it has made success possible.
For investors, that’s the takeaway: sometimes the most powerful catalyst isn’t a technological breakthrough—it’s the freedom to deploy it. As policymakers continue to modernize aviation oversight, Joby’s prospects, and by extension FMKT’s thesis, gain altitude. The skies may finally be opening—not just for electric aircraft, but for the broader idea that freer markets can help innovation truly take flight.
Footnotes
The Free Markets ETF, “About FMKT,” FreeMarketsETF.com, accessed Oct. 4, 2025.
United States
