Toyota Motor Corporation (Toyota; NYSE:TM ) and Joby Aviation, Inc. (Joby; NYSE:JOBY), a company developing electric air taxis for commercial passenger transport, recently announced that Toyota has invested an additional $500 million to support the certification and commercial production of Joby’s electric air taxis, in an effort to realize the companies’ shared vision for air mobility.
According to Industry sources, the Investment which will be done in two equal stages, will be subjected to standard regulatory approvals and certain additional conditions, the finalization of commercial and collaboration agreements, and the second stage will involve the finalization of terms related to a strategic alliance focused on commercial production and certain additional conditions.
Industry sources added that Toyota Motor Corporation’s investment in Joby, which will total $894 million, will be made in the form of cash for common stock. The first stage of this investment is expected to be completed by the end of this year and the second stage in 2025. Further details on the investment can be found in the company’s regulatory filings with the Securities and Exchange Commission (SEC).
“This investment builds on nearly seven years of collaboration between our companies,” stated JoeBen Bevirt , founder and CEO of Joby Aviation. “The expertise and support provided by Toyota have been instrumental in Joby’s success, and we look forward to deepening our relationship as we realize our shared vision for the future of air transportation.”
“With this additional investment, we are excited to see Joby’s aircraft certified and shift toward commercial production,” stated Tetsuo “Ted” Ogawa, who signed the agreement as COO on behalf of Toyota Motor Corporation. “We share Joby’s vision on the importance of sustainable flight to alleviate the ongoing challenges of today’s mobility.”
Toyota’s additional investments display the ongoing goal of Toyota Motor Corporation’s founding family, beginning with Kiichiro Toyoda and continuing through to Akio Toyoda, the firm’s current president, to realize the dream of air mobility for personal or everyday transportation as part of its transformation into a mobility company.
Industry sources added that Toyota’s relationship with Joby began through an initial investment done by Toyota Ventures, Toyota’s early-stage venture capital arm dedicated to exploring and identifying innovative technologies and firms for investment opportunities and offering aid for portfolio firms. Toyota Motor Corporation subsequently has accomplished investments totaling $394 million.