Japan’s renowned vehicle manufacturer Toyota Motor Corp (NYSE: TM) is investing an additional US$500 million into Joby Aviation Inc (NYSE: JOBY) to propel commercialization of its electric air taxi. Joby stock shot up by nearly 30 per cent following the announcement.
Toyota had previously invested US$394 million in the aircraft innovation company and has increased its stake more than two-fold. Joby will receive the first of two funding tranches by year end and the second in 2025.
“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” Tetsuo Ozawa, chief executive of Toyota’s North American division, said. Joby has been developing the relatively silent airborne craft for the past decade.
The air taxi is powered by six electric motors. It takes off and touches down completely vertically and can reach a speed of up to 200 miles per hour. In August, Joby applied for to have the multi-propellor helicopter certified in Australia.
Despite Toyota’s enthusiasm with today’s large investment, the company’s head of government and regulatory affairs recently decided to sell just under US$138,000 worth of his shares. Though his reasoning is uncertain, it has led to speculation.
"The Toyota family had a dream of building aircraft for daily transportation since the founding of Toyota," Joby Aviation CEO Joeben Bevirt says. "We've expanded the partnership … [and are bringing] the incredible quality that Toyota's known for to aviation manufacturing." pic.twitter.com/Xbc84lXyyZ
— Yahoo Finance (@YahooFinance) October 2, 2024
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Joby set to double its manufacturing space
The company broke ground at a new site in Marina, California a couple months ago that will expand its manufacturing footprint by over 100 per cent. Operations are set to commence there in 2025 with the aim of producing 25 air taxis per annum.
Joby showcased its second air taxi prototype model at the ground breaking ceremony too.
In February, Joby inked an agreement with Dubai’s government to launch air taxi services in the United Arab Emirates within the next two years or less.
Joby completed the first-ever exhibition flight with the aircraft in New York City last fall — its first test run in an urban environment.
rowan@mugglehead.com
