Joby Aviation Receives Major Investment from Toyota

Investing.com — Shares in Joby Aviation (NYSE:JOBY) surged sharply after Toyota Motor (NYSE:TM) announced an additional $500 million investment in the electric vertical takeoff and landing (eVTOL) aircraft maker. This funding aims to advance the certification and production of Joby’s electric air taxis.

The new investment builds on a previous $394 million commitment Toyota made as part of their strategic partnership focused on commercial manufacturing.

The investment, structured as cash for common stock, will occur in two tranches: the first will close in late 2024, and the second in 2025.

Joby Aviation’s shares jumped more than 22% in premarket trading.

Joby stated it continues to make significant progress toward certification and commercial rollout, recently beginning construction on an expanded facility in California.

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

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

Toyota’s involvement with Joby extends beyond financial support. Since 2019, the automaker has contributed its expertise in the Toyota Production System, which encompasses planning, developing manufacturing processes, and designing tooling.

Toyota’s shares rose less than 1% in premarket trade.