Toyota Becomes Top Shareholder in Air Taxi Maker Joby

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(Bloomberg) -- Toyota Motor Corp. has invested $250 million in Joby Aviation Inc., completing the first half of a previously announced $500 million commitment and becoming the air taxi maker’s largest shareholder.

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The investment, originally expected to close in 2024, is part of Toyota’s pledge to boost its total funding in the Santa Cruz, California-based company to $894 million. The latest tranche raises Toyota’s stake to 15.3%, surpassing that of Joby Chief Executive Officer JoeBen Bevirt.

A US spokesman for Toyota confirmed the payment. Joby has said it expects the second tranche from Toyota to close later this year.

Joby shares surged 25% to $8.57 as of 9:33 a.m. Wednesday in New York, bringing the stock’s performance to a 3.7% gain so far this year.

Joby is among a handful of companies developing eVTOL aircraft — electric vertical takeoff and landing vehicles — that plan to fly customers on short commuter journeys via battery-powered air taxis.

“This milestone further cements the collaboration and alignment between our two companies,” Tetsuo “Ted” Ogawa, CEO of Toyota North America, said in a statement Tuesday.

Joby said recently it now aims to start commercial services in Dubai by early 2026 after having previously targeted the end of this year. Certification for flight operations by the US Federal Aviation Administration and regulators in other countries is still pending.

Toyota began financing Joby in 2020, two years after its venture capital arm participated in a funding round.

(Updates from fourth paragraph with opening shares Wednesday.)

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