TLDR
- Joby Aviation (JOBY) stock jumped 30% after receiving $250 million from Toyota as first payment of previously announced $500 million investment deal
- The company ended latest quarter with over $800 million cash and has burn rate of just over $500 million annually
- JOBY completed 45% of FAA’s fourth stage aircraft certification and successfully tested air taxi with pilot on board in April 2025
- Company has partnerships with Delta Air Lines and Virgin Atlantic for future air taxi operations in US and UK markets
- Canaccord analysts maintain $12 price target representing 40% upside potential from current levels
Joby Aviation stock rocketed 30% higher Wednesday after the electric aircraft company confirmed it received the first $250 million payment from Toyota. The payment represents half of Toyota’s previously announced $500 million strategic investment in the urban air mobility firm.
The stock surge came despite the funding not being entirely unexpected. Toyota had already committed to the full $500 million investment during the fourth quarter of 2024.
Markets appear to be reacting positively to the actual receipt of funds rather than just the promise. The payment puts Toyota and Joby “a step closer toward a strategic manufacturing alliance,” according to company leadership.
Strong Financial Position Supports Growth Plans
Joby Aviation maintains a solid cash position heading into the second half of 2025. The company ended its most recent quarter with over $800 million in cash and short-term investments.
With an annual burn rate sitting just above $500 million, the additional Toyota funding provides meaningful runway. The combined resources give Joby substantial financial flexibility for aircraft certification and commercial launch preparations.
CEO JoeBen Bevirt highlighted the operational benefits of the Toyota partnership. “We’re already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design,” Bevirt said in Wednesday’s press release.
The collaboration extends beyond just financial support. Toyota’s manufacturing expertise could prove valuable as Joby scales production of its electric vertical takeoff and landing aircraft.
Certification Progress Accelerates Commercial Timeline
Joby has made substantial progress toward full FAA certification for its air taxi. The company completed nearly 45% of the FAA’s capital-intensive fourth stage of aircraft certification.
The future is arriving now…
…and it’s made in America. Not one, but two Joby air taxis, flying side by side in the skies over California.
As soon as next year, these aircraft will be taking to the skies above Los Angeles and New York City.
Read more in our press release:… pic.twitter.com/NG6t5twYQD
— Joby Aviation (@jobyaviation) May 12, 2025
April 2025 marked a major milestone when Joby successfully tested its electric air taxi with a pilot on board. This inhabited test flight represented a breakthrough that competitors have not yet achieved routinely.
The piloted test flights demonstrate the aircraft’s safety and readiness for eventual commercial operations. Joby plans to expand pilot-onboard testing to Dubai in the coming months.
These certification advances position Joby ahead of rivals in the race to launch commercial air taxi services. The company’s progress could translate into first-mover advantages in key markets.
Joby has secured strategic partnerships to support its commercial launch. The company teamed with Delta Air Lines in 2022 for US operations and more recently partnered with Virgin Atlantic for UK air taxi services.
Competitive Landscape Shifts in Joby’s Favor
Recent developments have potentially strengthened Joby’s competitive position. A damaging report surfaced about closest rival Archer Aviation alleging the company misled investors about development timelines and aircraft capabilities.
If these allegations against Archer prove accurate, Joby could gain substantial advantages in the electric aircraft market. Toyota’s reputation for quality and reliability adds credibility to Joby’s development efforts.
Analysts remain bullish on the stock’s prospects. Canaccord maintains a $12 price target on Joby shares, representing roughly 40% upside potential from current trading levels.
The investment firm views the Toyota partnership and certification progress as sufficient catalysts to drive continued stock appreciation. The analyst outlook reflects confidence in Joby’s execution capabilities.
Joby received the $250 million Toyota payment this week and expects the remaining $250 million as the strategic partnership develops further.
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