Toyota and Joby Aviation have announced that the motor manufacturing giant will invest a further US$500 million to support the certification and commercialisation of Joby’s eVTOL. The investment, which remains subject to SEC approval, will be made in two equal tranches, with the second tranche not only subject to regulatory approvals but also the finalisation of collaborative and commercial agreements, including the terms of a strategic manufacturing alliance.
If both tranches are realised, Toyota’s total investment in Joby will be $894m with the new cash injection made in the form of cash for common stock, with the first tranche expected to close before the end of the year and the second in 2025.
“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “The knowledge and support shared by Toyota has 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.”
Meanwhile, Tetsuo “Ted” Ogawa, who signed the agreement as the Operating Officer on behalf of Toyota Motor Corporation, added: “With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production. We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
One noticeable change is the addition of Toyota branding on the aircraft, prompting the question of how much of the stock Toyota will secure for its half a billion dollars. Certainly, the company’s share price hasn’t been harmed by the announcement, with the share price rising by 25% ($1.20) to break the $6 mark in early post-announcement trading, ending the day at $6.14.
Photo: Joby/Toyota
