[May 28, 2025] - Toyota Motor Corporation has officially completed the first tranche of its planned $500 million investment in U.S.-based electric air taxi developer Joby Aviation, marking a major milestone in the two companies' strategic partnership. This $250 million investment is part of a broader $894 million collaboration agreement announced in 2024. The news sent Joby's stock (NYSE: JOBY) soaring more than 26% on the day, closing at $8.70 per share, highlighting strong market confidence in the future of electric vertical take-off and landing (eVTOL) technology.
According to the investment agreement, Toyota's $500 million commitment is divided into two phases. The first $250 million, originally scheduled for the second half of 2024, has now been successfully executed. The second tranche is expected to be completed in 2025. Including a previously disclosed $144 million initial investment, Toyota's total equity contribution to Joby has now reached $344 million, further demonstrating Toyota's long-term confidence in the emerging advanced air mobility (AAM) sector.
Joby Aviation is a pioneer in the development of eVTOL aircraft, currently working toward FAA certification for its five-seat electric air taxi. The aircraft is designed for zero-emissions urban transportation, combining helicopter-like vertical take-off and landing with low noise, high efficiency, and fast point-to-point service. Joby aims to begin commercial operations in 2025, and Toyota's investment will be used to support FAA certification, accelerate scaled manufacturing, and prepare for market entry in North America and beyond.
Toyota and Joby have been collaborating since 2020, when Toyota initially invested $394 million into the air mobility company. Over the years, their partnership has expanded beyond capital investment to include deep technical cooperation in areas such as powertrain systems, lightweight materials, and advanced manufacturing. Joby's CEO, JoeBen Bevirt, recently emphasized that Toyota's involvement has helped streamline production processes and enhance product design-critical steps toward full-scale commercial deployment.
Industry analysts view Toyota's continued backing of Joby as a strategic move to secure an early foothold in the fast-growing eVTOL market. The sector is gaining momentum as cities face increasing traffic congestion, environmental concerns, and rising demand for efficient, sustainable transportation alternatives. Competitors like Archer Aviation and Lilium are also racing to commercialize their platforms, and Toyota's manufacturing expertise could give Joby a significant advantage in this emerging space.
From a broader perspective, the development of eVTOL technology aligns with global efforts to promote green mobility, reduce urban emissions, and build smart cities. Toyota's investment reflects its evolving identity-from a traditional carmaker to a comprehensive mobility provider-and signals its ambition to shape the future of transportation through next-generation technologies.
