Santa Cruz (TDI): To support the certification and commercial production of Joby’s electric air taxi, Toyota Motor Corporation (Toyota; NYSE: TM) and Joby Aviation, Inc. (Joby; NYSE: JOBY), a company developing electric air taxis for commercial passenger service, announced that Toyota will invest an additional $500 million.
The goal of this investment is to realize the shared air mobility vision.
The investment will be made in two equal tranches, subject to standard regulatory approvals and a few other conditions, as well as the completion of commercial and collaborative agreements and, in the case of the second tranche, the finalization of terms about a strategic alliance with a focus on commercial manufacturing.
With the second tranche expected to close in 2025 and the first tranche expected to close later this year, Toyota Motor Corporation will have invested $894 million in Joby overall with this investment.
The investment will be made in cash for common shares. Additional information on the investment can be found in the firms’ SEC regulatory filings.
Joe Ben Bevirt, the founder and CEO of Joby Aviation, stated, “Today’s investment builds on nearly seven years of collaboration between our companies.”
“Joby’s success has been largely attributed to Toyota’s knowledge and assistance, and we look forward to strengthening our partnership as we realize our common goal for the future of aviation.”
Joby has started construction on a larger facility in California that would more than double the company’s manufacturing area, and it just rolled its third aircraft off its pilot production line in Marina, California, marking significant progress toward commercialization.
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In August 2024, it was verified that the Joby side had completed almost one-third of the fourth, out of five, stages of the type certification process.
Tetsuo “Ted” Ogawa, who signed the deal as Toyota Motor Corporation’s operating officer, stated, “With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production.”
“Joby and I both believe that addressing today’s ongoing mobility issues will require sustainable flying.”
As part of its transformation into a mobility firm, Toyota’s increased investment underlines the ongoing goal of the company’s founding family, from Kiichiro to current Chairman Akio Toyoda, to realize the dream of air mobility for personal or daily travel.
As of 2019, Toyota has committed time and manpower to disseminate its expertise in the Toyota Production System through process planning, tooling design, and manufacturing method development, in addition to monetary contributions.
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Today, Toyota engineers collaborate closely with the Joby team in California, and the two businesses inked a long-term contract in 2023 for Toyota to provide essential powertrain and actuation components for the manufacture of Joby’s aircraft.
Toyota Ventures, the company’s early-stage venture capital arm that searches for and finds disruptive technologies and businesses for investment opportunities and offers portfolio company support, was the first to invest in Joby, which marked the beginning of Toyota’s association with him. Following that, Toyota Motor Corporation finished making $394 million in investments.
About Joby Aviation
An all-electric, vertical take-off and landing air taxi are being developed by Joby Aviation, Inc. (NYSE: JOBY), a transportation firm based in California.
The company plans to offer the air taxi as a quick, quiet, and convenient service in cities around the world.
