Toyota Raises Strategic Investment in Joby Aviation, Now Its Largest Shareholder
- justdcwillie
- May 28
- 3 min read
May 28, 2025 — Toyota Motor Corporation has deepened its commitment to future urban mobility by significantly expanding its investment in Joby Aviation Inc., a US-based premier developer of electric vertical takeoff and landing (eVTOL) aircraft. With a new US$250 million (approximately RM1.06 billion) investment finalized this week, Toyota is now Joby's largest investor with a 15.3% stake—surpassing that of the company founder and CEO JoeBen Bevirt.
The investment rounds out an initial tranche of a US$500 million funding commitment made previously, as part of a longer-term plan that will ultimately see Toyota's total financial investment in Joby reach US$894 million. The remaining US$250 million is expected to be made available later this year, subject to customary processes.
Strengthening a Long-Term Partnership
Toyota's deepening involvement with Joby dates back to 2020 when the carmaker participated in a major funding round via its venture capital arm. Since then, the partnership has extended beyond financial backing into a more integrated relationship, encompassing shared expertise in manufacturing, quality, and product development.
This milestone further strengthens the partnership and alignment between our two companies," said Tetsuo "Ted" Ogawa, CEO of Toyota North America. He emphasized the strategic synergy between Toyota's decades-long history of high-efficiency, precision manufacturing and Joby's cutting-edge aerospace technologies.
Joby's Vision for Urban Air Mobility
Joby Aviation is a leader in the rapidly emerging eVTOL sector—electrically powered aircraft that take off and land vertically and are designed for short-distance, high-frequency commuting flights. The aircraft are widely envisioned as a possible solution to urban congestion, offering zero-emission travel that bypasses traditional road infrastructure.
The Santa Cruz, California-based company has created an airplane capable of flying as fast as 200 mph and as distant as 150 miles on a single charge. Its emission-free and quiet flight profile and comparatively low landing requirement make it ideal for suburban and inner-city flights.
Although Joby had previously aimed to launch commercial services as early as 2024, regulatory hurdles and development timelines of late have pushed its anticipated launch to early 2026. The company will launch its services in Dubai, a city that has shown strong government support for next-generation transportation solutions and has already begun forging strategic partnerships with advanced air mobility companies.
Market Reaction and Industry Implications
Following Toyota's announcement, Joby's stock price rose 3.5% to US$7.12 in New York after-hours trade. The stock is still down around 15% year-to-date, an indication of investor caution on the regulatory challenges and technological readiness of the eVTOL sector.
Still, Toyota's increased investment is a strong vote of confidence in Joby's vision and abilities, particularly at a time when most electric aviation startups are grappling with capital constraints and long regulatory lead times.
The investment also represents Toyota's broader strategic move into diversified mobility solutions, beyond traditional cars and trucks. As governments around the world push for cleaner, smarter urban infrastructure, major automakers are looking to eVTOL and autonomous vehicle technologies as core pillars of future growth.
Looking Ahead
Joby's focus remains on achieving FAA certification, expanding its operating footprint in key global cities, and scaling up production. Toyota, with its world-class best-in-class lean manufacturing capabilities and global logistics experience, is expected to play a critical role in supporting this scale-up effort.
As the world of transportation continues to evolve so quickly, Toyota's continued investment in Joby reaffirms that it believes the future of transportation extends far beyond roads—and that air mobility will become a reality for daily life sooner than many may think.
Key Investment Details:
Detail | Information |
Investment Amount | US$250 million (RM 1.06 billion) |
Total Toyota Commitment | US$894 million (RM 3.80 billion) |
Toyota's Current Stake | 15.3% |
Joby CEO Stake | <15.3% |
Stock Reaction | +3.5 after announcement |
Planned Commercial Launch | Early 2026 in Dubai |
Technology | eVTOL aircraft for urban air mobility |
THE UNCOMMON BREED
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