Toyota Boosts Investment in Joby Aviation with $500 Million for Electric Air Taxi Development

Thursday, October 3, 2024

Toyota Motor Corporation and Joby Aviation, Inc. a company pioneering electric air taxis for commercial passenger service, announced a significant $500 million investment from Toyota to accelerate the certification and commercial production of Joby’s electric air taxi, aimed at advancing the shared vision of both companies for air mobility.

This investment will be split into two equal tranches, subject to standard regulatory approvals, the finalization of collaborative agreements, and the completion of terms for a strategic alliance focused on commercial manufacturing. Upon completion, Toyota’s total investment in Joby will reach $894 million, with the first tranche set to close later this year and the second in 2025. The funds will be exchanged for common stock, with further information available in regulatory filings with the SEC.

Joby continues to progress toward its goal of commercialization, having recently rolled out its third aircraft from its pilot production line in Marina, California. Additionally, Joby is expanding its manufacturing facility to more than double its production capacity. In August 2024, Joby confirmed that the fourth stage of the five-stage type certification process is more than one-third complete.

“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO, Joby Aviation. “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’s increased investment reflects its long-standing commitment, originating with company founder Kiichiro Toyoda and continued by current Chairman Akio Toyoda, to making air mobility a reality as part of Toyota’s broader transformation into a mobility company.

“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo “Ted” Ogawa, who signed the agreement as the Operating Officer on behalf of Toyota Motor Corporation. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”

Since 2019, Toyota has not only contributed financially but also shared its expertise in process planning, manufacturing methods, and tooling design. Toyota engineers are now working closely with Joby’s team in California, and in 2023, the companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for Joby’s aircraft.

Toyota’s involvement with Joby began through Toyota Ventures, the company’s venture capital arm that identifies disruptive technologies and supports innovative companies. Following the initial investment by Toyota Ventures, Toyota Motor Corporation’s total investments in Joby have amounted to $394 million prior to this latest commitment.

The shares in this investment are not registered under the Securities Act of 1933 and may not be sold in the U.S. without proper registration or an exemption. This announcement is not a solicitation to buy or sell these securities, nor will there be any sale of the securities where it would be unlawful before registration or qualification under local securities laws.

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