Toyota Motor Corp. (TM) has taken a commanding position in the future of electric aviation, injecting $250 million into Joby Aviation Inc. (JOBY)
This is a bold move that makes the Japanese auto giant the air taxi developer’s largest shareholder. With this latest investment, Toyota’s total stake in Joby climbs to 15.3%, edging past even that of Joby's CEO, JoeBen Bevirt.
This capital injection represents the first half of a previously announced $500 million commitment. Once complete, Toyota’s cumulative funding in Joby will reach $894 million, significantly strengthening the long-term alliance between the two companies. The deal had originally been expected to close later in 2024 but appears to be accelerating ahead of schedule.
Joby's Soaring Vision and New Timeline
The Santa Cruz, California-based startup is developing eVTOL (electric vertical takeoff and landing) aircraft for commercial passenger service—an urban air mobility vision that has long promised to alleviate gridlocked roads by taking transportation skyward.
Joby plans to launch its first commercial services in Dubai by early 2026, a revision from its previous target of late 2025. Certification from U.S. and international aviation regulators remains pending, a critical milestone for operations to begin.
Despite the delay, the market responded with enthusiasm. Joby shares surged nearly 26% in Wednesday trading, jumping to $8.57 and pushing the company’s year-to-date gain to 3.7%. The rally underscores investor optimism that Toyota’s manufacturing muscle could fast-track the commercialization of air taxis.
A Manufacturing Blueprint from the Automotive World
Joby's production model is heavily influenced by Toyota’s lean manufacturing practices. Its California assembly line mirrors Toyota’s own design philosophy—precision, efficiency, and scalability. The partnership goes beyond capital: it’s about transforming a visionary prototype into a mass-produced, certifiable air vehicle.
“We’re already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design,” said Bevirt, Joby's CEO. “With this capital and Toyota’s legendary production expertise, we’re enhancing our ability to scale cutting-edge design and manufacturing.”
Tetsuo “Ted” Ogawa, CEO of Toyota North America, echoed the sentiment: “This milestone further cements the collaboration and alignment between our two companies. Our investment in Joby reflects our shared dream of mobility for all and our commitment to achieving a future of air mobility.”
Investor Confidence Soars, But Challenges Remain
The investment comes as interest in advanced air mobility intensifies, with Joby among a select group of firms—alongside Archer, Lilium, and Vertical Aerospace—racing to secure regulatory approvals and commercial partnerships.
Yet Joby’s road—or rather, airpath—to profitability is anything but straightforward. Certification hurdles, operational logistics, urban integration, and infrastructure development all loom large. And while the Dubai launch offers a potentially friendlier regulatory environment, expansion into major U.S. cities will demand FAA sign-off and robust public-private coordination.
Still, Joby’s narrative is gathering momentum, buoyed by strong backers and a maturing product roadmap. With Toyota’s support, the company is positioning itself not just as a promising startup, but as a serious contender in the race to reshape urban transport.
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