TLDR:
- Toyota investing $500 million in Joby Aviation, increasing stake to over 20%
- Investment tied to strategic alliance for commercialization and manufacturing
- Joby aims to launch commercial air taxi services as soon as next year
- Company has raised over $2 billion and is among better-capitalized in sector
- Joby stock surged 27.92% on news, closing at $6.14
Toyota Motor is doubling down on its bet on flying taxis, announcing a $500 million investment in Joby Aviation, a leader in the emerging electric vertical takeoff and landing (eVTOL) aircraft industry.
This fresh injection of capital, which will increase Toyota’s stake in Joby to over 20%, comes as part of a strategic alliance aimed at bringing Joby’s air taxi vision to life.
Joby Aviation, founded in 2009 and based in California, has been at the forefront of developing electric air taxis. The company’s aircraft, designed for urban air mobility, promises to revolutionize short-distance travel by offering a fast, emission-free alternative to ground transportation.
The latest investment from Toyota builds on nearly seven years of collaboration between the two companies. It will be delivered in two tranches, bringing Toyota’s total commitment to Joby to close to $900 million.
This significant financial backing underscores Toyota’s belief in the potential of air mobility to transform the future of transportation.
JoeBen Bevirt, Joby’s founder and CEO, expressed enthusiasm about the partnership, stating, “We’re looking forward to building a manufacturing alliance with Toyota to really scale this new model of transportation.”
The alliance is expected to leverage Toyota’s expertise in mass production and quality control to help Joby commercialize its air taxi service.
Joby has made substantial progress in its journey towards commercialization. The company’s aircraft is the first eVTOL to have its certification plans accepted by the Federal Aviation Administration (FAA), a crucial step towards full approval. Joby is now focusing on launching its first commercial service in Dubai as early as next year.
To support these ambitious plans, Joby has set up a pilot production line in Marina, California. The company aims to increase its production capacity to one vehicle per month by the end of this year, a significant milestone in its path to full-scale manufacturing.
The eVTOL sector has faced challenges, with some companies forced to seek additional funding and delay certification milestones. However, Joby stands out as one of the better-capitalized players in the industry, having raised over $2 billion prior to Toyota’s latest investment.
Toyota’s investment in Joby aligns with the automaker’s broader strategy of betting on multiple technologies to meet future mobility needs. The company sees air mobility as a key component of the future transportation landscape, complementing its investments in electric vehicles, hydrogen cars, and next-generation internal combustion engines.
The news of Toyota’s investment had an immediate impact on Joby’s stock price. Shares of Joby Aviation (NYSE: JOBY) surged 27.92% on the announcement, closing at $6.14. This significant uptick reflects investor optimism about the company’s prospects and the vote of confidence from a major automotive player like Toyota.

Joby isn’t the only player in the eVTOL space attracting attention from traditional automakers. Stellantis, the parent company of Chrysler, recently invested an additional $55 million in Archer Aviation, another eVTOL startup.
This trend suggests growing interest from the automotive sector in the potential of urban air mobility.
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