Joby Aviation Soars as Toyota Announces $500 Million Investment in eVTOL Company

Shares of Joby Aviation experienced a significant increase following the announcement that Toyota Motor would invest an additional $500 million in the electric vertical takeoff and landing (eVTOL) aircraft manufacturer. This funding aims to enhance the certification and production of Joby’s electric air taxis.

This latest investment builds on Toyota’s previous commitment of $394 million to Joby, part of an ongoing strategic partnership focused on commercial manufacturing.

The investment will be made in cash for common stock and will be distributed in two phases: the first phase is set to close later in 2024, and the second in 2025.

In premarket trading, Joby Aviation’s shares surged more than 22%. The company is making notable progress on both certification and commercial rollout, recently commencing construction on an expanded facility in California.

JoeBen Bevirt, founder and CEO of Joby Aviation, stated, “Today’s investment builds on nearly seven years of collaboration between our companies. The knowledge and support shared by Toyota have been instrumental in Joby’s success, and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”

Toyota engineers are working closely with Joby’s team in California. Last year, the two companies finalized a long-term agreement for Toyota to supply essential powertrain components and other critical parts for Joby’s aircraft.

Ted Ogawa, CEO of Toyota Motor North America, commented, “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”

Toyota’s engagement with Joby extends beyond financial backing. Since 2019, the automaker has provided its expertise in the Toyota Production System, aiding in everything from planning and developing manufacturing processes to designing tooling.

In premarket trading, Toyota’s shares saw an increase of less than 1%.