Joby Aviation (JOBY) closed a $250 million investment from Toyota (TM) last week as part of what Joby called a "significant milestone" in its long-standing collaboration with the automaker.
Toyota, already Joby’s largest external shareholder, had invested $400 million into the electric air taxi company before this latest deal.
Toyota President and CEO Tetsuo "Ted" Ogawa joined Joby’s board in 2023, cementing the strategic alignment between the two firms.
The new funds will be used to support certification and commercial production of Joby’s electric aircraft, and further Joby’s goal of building a manufacturing alliance with Toyota.
“We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design,” Joby founder and CEO JoeBen Bevirt said in a statement.
“This is an important next step in our alliance with Toyota to scale the promise of electric flight.”
Bevirt credited both Toyota’s capital and its “legendary production expertise” for helping accelerate Joby’s manufacturing scale-up.
“Our investment in Joby reflects our shared dream of mobility for all and our commitment to achieving a future of air mobility,” Ogawa said.
Shares of JOBY jumped more than 28% after the announcement. The stock is down 4.1% year-to-date but has surged 62.1% over the past 12 months.
Eyes on Dubai and FAA flight testing
Joby is aiming to begin pilot test flights in Dubai by the middle of this year
Its aircraft features a vertical-to-horizontal transition design, enabling it to take off and land like a helicopter but fly like a traditional fixed-wing plane.
The company completed its first piloted flight tests demonstrating this transition in April, which marks a major leap toward regulatory approval.
“The successful flights pave the way for us to begin testing with FAA pilots on board,” said Didier Papadopolous, President of Aircraft OEM at Joby.
Paul Perera, co-founder of HyFlux — a manufacturer of cryogenic hydrogen motors for aviation — called Toyota’s investment “a strategic leap toward the future of air mobility” in a LinkedIn post.
“Toyota brings its legendary production expertise. Joby brings the tech,” he wrote. “Together, they're not just building vehicles — they're creating the infrastructure for everyday electric flight.”
Joby isn’t alone in the air taxi race. Rival Archer Aviation (ACHR), which is partnered with Palantir (PLTR), plans to launch its own piloted VTOL flights in the United Arab Emirates later this year.
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