Toyota is doubling down on Joby Aviation, a California-based company developing electric air taxis, with a new investment of $500 million. This brings Toyota's total investment in Joby to $894 million, including an earlier $394 million investment made in 2020.
These funds will support Joby in completing the lengthy Type 2 certification process with the Federal Aviation Administration (FAA) and help in the commercial production of its electric vertical takeoff and landing (eVTOL) aircraft. Joby is now in the fourth phase of its five-stage certification process and plans to begin its commercial air taxi service by 2025. The company recently rolled out its third aircraft from its pilot production line in Marina, California, and has expanded its facility in the state, doubling its manufacturing footprint.
The companies stated that the investment will be made in two equal cash installments for common stock, with the first installment expected later this year and the second in 2025.
Founded in 2009 by JoeBen Bevirt, Joby has spent over a decade developing, certifying, and preparing its eVTOL aircraft for commercial use as an urban taxi service. Over the past five years, the company has gained more prominence as it made progress in its eVTOL development and secured high-profile funding.
In 2020, Joby acquired Uber’s air taxi project, Elevate, as part of a complex deal. Under the terms, Uber divested Elevate into Joby Aviation and invested $75 million into the startup. The companies also expanded their existing partnership. A year later, Joby announced plans to go public through a merger with Reinvent Technology Partners, a special-purpose acquisition company backed by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus.
Joby has also garnered several backers along the way, most notably Toyota, which made its first investment in the company through its early-stage venture capital arm, Toyota Ventures.
Toyota has contributed more than just capital to Joby. Since 2019, the automaker has shared its expertise in the Toyota Production System with Joby, covering planning, manufacturing methods, and tooling design. According to both companies, Toyota engineers are now working side by side with the Joby team in California. In 2023, the companies signed a long-term agreement under which Toyota will supply key powertrain and actuator components for Joby’s aircraft.
Bevirt stated, "Today’s investment builds on nearly seven years of collaboration between our companies. The insights and support provided by Toyota have been instrumental to Joby’s success, and we look forward to deepening our relationship as we work together to deliver our shared vision for the future of air travel."
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