Toyota Boosts Joby Aviation’s Future with $500 Million Investment
$JOBY
In a bold move to further its ambitions in the emerging air mobility sector, Toyota Motor Corporation (NYSE: TM) has announced an additional $500 million investment in Joby Aviation, Inc. (NYSE: JOBY), the electric air taxi pioneer. This substantial financial backing underscores Toyota’s commitment to advancing Joby’s electric vertical takeoff and landing (eVTOL) aircraft, aimed at revolutionizing urban air travel.
The investment will be made in two equal installments, with the first tranche expected to close later this year and the second in 2025. Once completed, this will bring Toyota’s total stake in Joby to an impressive $894 million, reflecting the growing synergy between the two companies. Their collaboration, which dates back almost seven years, has been instrumental in Joby’s steady progress towards the commercial production and certification of its air taxis.
Joby is rapidly moving towards its goal of transforming air transportation. The company recently celebrated a key milestone with the rollout of its third aircraft from the pilot production line in Marina, California, and has broken ground on a new manufacturing facility aimed at significantly scaling its production capacity. These developments align with Joby’s progress in the U.S. Federal Aviation Administration (FAA)’s type certification process, where it is currently in the fourth of five critical stages—a necessary step before Joby can begin commercial operations.
Toyota’s involvement in Joby’s growth extends far beyond capital investment. Since 2019, the automotive giant has been deeply involved in transferring its world-class manufacturing expertise, particularly through its renowned Toyota Production System (TPS). This includes valuable insights into process planning, manufacturing techniques, and tooling design—key areas that are critical to the efficient production of Joby’s aircraft. Toyota engineers are now embedded in Joby’s California operations, marking a deepening of the strategic partnership.
The relationship between Toyota and Joby initially began through Toyota Ventures, the automaker’s early-stage venture capital arm. Over time, Toyota’s role has expanded, with the company now providing key components for Joby’s aircraft, including powertrain and actuation technologies. This collaboration is not just a financial investment; it represents a shared vision of the future of urban mobility, with both companies working towards the widespread commercialization of all-electric, vertical take-off air taxis.
Looking forward, the Toyota-Joby partnership is poised to set new standards for urban transportation. Toyota’s continued investment signals its transition towards becoming a full-fledged mobility company, while Joby remains at the forefront of developing sustainable urban air mobility solutions. This joint effort is set to redefine how cities manage congestion, mobility, and environmental challenges by introducing electric air taxis as a viable form of transportation.
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