Toyota to invest further $500m in Joby

Toyota will invest an additional $500m in Joby, bringing total investment from the auto giant to $894m.

The investment will be made in the form of cash for common stock across two tranches of $250m. Subject to certain closing conditions, the first tranche is targeted to close later this year and the second in 2025. The deal was signed today at Toyota’s North American regional headquarters in Plano, Texas.

“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo ‘Ted’ Ogawa (pictured above left), who signed the agreement as the operating officer on behalf of Toyota. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”

Toyota and Joby’s story began through an initial investment made by Toyota Ventures, the early-stage venture capital arm of the automotive giant. Toyota subsequently completed investments totalling $394m. The company’s engineers now work side-by-side with the Joby team in California, and, in 2023, the pair signed a long-term agreement for Toyota to supply powertrain and actuation components for the production of Joby’s aircraft.

Joby recently rolled out its third aircraft off the production line and broke ground on an expanded facility that will more than double the firm’s manufacturing footprint. In August, it also confirmed that the fourth of five stages of the FAA’s type certification process is now more than one-third complete on the Joby side.

“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt (pictured above right), founder and CEO, Joby. “The knowledge and support shared by Toyota has been instrumental in Joby’s success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”

See SEC filing here.