Toyota Motor is investing an additional $500 million in Joby Aviation to support the U.S. electric air taxi company’s launch of commercial passenger services. This investment is on top of the $394 million capital injection Toyota made in Joby in 2020. The funding will be provided in two equal tranches, with the first one expected to close by the end of the year and the second in 2025. Joby plans to use the proceeds for the certification and commercial production of its electric air taxis, with the goal of starting commercial services in Dubai in late 2025.
The New York-listed company’s electric air taxis are designed to carry four passengers plus a pilot at speeds of up to 200 miles per hour. Joby has previously flown more than 150 miles on a single charge in a test flight. Toyota’s investment in Joby reflects its commitment to sustainable flight as a solution to today’s mobility challenges. Toyota Ventures, the company’s venture capital arm, has also invested in other futuristic transportation technologies, such as self-driving shuttles and solid-state batteries for electric vehicles.
In 2020, Toyota led Joby’s $590 million Series C round, with participation from other investors including Intel Capital and Baillie Gifford. Joby has previously received investments from SK Telecom, Uber Technologies, and others. The company 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 actively investing in futuristic transportation technologies to diversify its lineup that includes electric vehicles and hybrid cars.
Morgan Stanley has predicted that the electric flying taxis market could reach more than $1 trillion by 2040, attracting investments from companies like South Korean conglomerate Hanwha and Chinese tech giant Tencent. Hanwha has backed U.S. air taxi developer Overair, while Tencent has invested in German rival Lilium. Toyota’s investment in Joby Aviation reflects its strategic bet on the future of transportation, as it seeks to stay ahead in the rapidly evolving mobility industry.
As Joby works towards the certification and commercial production of its electric air taxis, Toyota’s investment will help support the company’s vision of sustainable flight. With plans to begin commercial services in Dubai in late 2025, Joby is poised to revolutionize urban air mobility and address the increasingly congested transportation challenges in major cities. Toyota’s continued support of Joby reflects its commitment to innovation and its belief in the potential of electric air taxis to transform the way people travel in the future.
