Toyota Motor is continuing its support of Joby Aviation, a U.S. electric air taxi company, with a new $500 million investment. This investment is in addition to the $394 million Toyota invested in Joby in 2020 and makes Toyota the largest external shareholder in the company. The funding will be provided in two equal tranches, with the first expected to close by the end of the year and the second in 2025, pending regulatory approvals. The investment will take the form of cash for common stock, and will support Joby’s efforts to certify and produce its electric air taxis for commercial use.
Joby plans to use the funds from Toyota for the certification and commercial production of its electric air taxis. The company aims to begin offering commercial services in Dubai by late 2025, with flights from Dubai International Airport to the Palm Jumeirah artificial island. The aircraft, designed to carry four passengers and a pilot at speeds of up to 200 miles per hour, has already completed successful test flights, including one where it flew over 150 miles on a single charge. Toyota’s president and CEO of North American operations, Tetsuo Ogawa, expressed excitement about Joby’s progress and the potential for sustainable flight to address modern transportation challenges.
In addition to Toyota, Joby has attracted investments from a variety of other notable companies, including Intel Capital, Baillie Gifford, SK Telecom, and Uber Technologies, among others. The company recently went public in 2021 through a merger with a blank check company, valuing it at $6.6 billion. Toyota, known as the world’s top-selling automaker, has been investing in futuristic transportation technologies, such as electric vehicles and hybrid cars, through its venture capital arm, Toyota Ventures. This arm has also invested in other emerging technologies, such as self-driving shuttles and solid-state batteries for electric vehicles, reflecting Toyota’s commitment to innovation and sustainability.
According to Morgan Stanley, the market for electric flying taxis could exceed $1 trillion by 2040, indicating significant growth potential in the industry. Other companies, such as South Korean conglomerate Hanwha and Chinese tech giant Tencent, are also investing in the development of electric air taxis, further highlighting the global interest in this nascent market. These investments are driven by the belief that electric air taxis could provide a more sustainable and efficient form of transportation in urban areas, reducing congestion and emissions while offering passengers a faster and more convenient travel option.
Overall, Toyota’s continued investment in Joby Aviation reflects its commitment to supporting innovative and sustainable transportation solutions. By backing Joby’s efforts to develop and commercialize electric air taxis, Toyota is positioning itself at the forefront of this emerging industry. With the potential for significant market growth and increasing interest from other major companies, the future of electric air taxis looks promising and could play a key role in shaping the future of urban mobility.
