Joby Aviation Inc. (NYSE: JOBY) shares surged approximately 5% in morning trading today, reaching a price of $10.03, following the announcement of a significant $250 million strategic investment from Toyota Motor Corporation (NYSE: TM). This funding marks a pivotal milestone in the long-term collaboration between the two companies and underscores their shared vision for the future of air mobility.
The investment is part of a broader $500 million commitment by Toyota, aimed at supporting the certification and commercial production of Joby’s electric vertical takeoff and landing (eVTOL) aircraft. The funds will be allocated in two equal tranches, with the first expected to close later this year and the second in 2025. Upon completion, Toyota’s total investment in Joby will amount to $894 million, solidifying its position as a significant stakeholder in the company.
Joby Aviation, based in Santa Cruz, California, is developing an all-electric air taxi designed to provide fast, quiet, and convenient urban transportation. The aircraft is capable of carrying four passengers and a pilot, with a range of up to 100 miles and speeds reaching 200 mph. This innovative mode of transportation aims to alleviate urban congestion and reduce environmental impact.
The partnership between Joby and Toyota extends beyond financial investment. Toyota has been actively involved in the development process, providing expertise in manufacturing and engineering. Toyota engineers work alongside Joby’s team in California, contributing to the design and production of key components for the air taxi. This collaboration is expected to enhance the scalability and efficiency of Joby’s operations as it moves toward commercial deployment.
As Joby Aviation progresses toward certification and production, the support from Toyota positions the company favorably in the competitive eVTOL market. The strategic investment not only strengthens the financial foundation of Joby but also reinforces the strategic alliance between the two companies, paving the way for the realization of sustainable urban air mobility solutions.
