Toyota Invests $500 Million in Joby Aviation: The Future of Air Taxis

Toyota's Major Investment in Joby Aviation

Toyota is taking a significant step in the air taxi industry by investing another $500 million in Joby Aviation. This funding aims to facilitate the certification and commercial production of electric vertical takeoff and landing (eVTOL) aircraft designed for a ride-hailing service. With this latest investment, Toyota's total contribution to Joby since 2018 has reached $894 million.

Investment Structure

The investment will be executed in two tranches of $250 million each. The first tranche is set to be completed this year, while the second will follow in 2025. In addition, Toyota plans to form a manufacturing alliance with Joby for the initial phase of commercialization, following an agreement that allows Toyota to produce powertrain components for Joby’s air taxi.

About Joby Aviation

Founded in 2009 by JoeBen Bevirt, Joby Aviation has been quietly making strides in the aviation sector. The company gained significant attention in 2018 after securing a $100 million investment round that included backing from major players like Intel, Toyota, and JetBlue. This funding enabled Joby to develop a prototype and conduct test flights at a private airfield in Northern California, which impressed Toyota enough to send its engineers to collaborate closely with Joby.

Innovative Aircraft Features

Joby’s all-electric aircraft features six rotors and can accommodate up to five passengers, including the pilot. The design allows it to take off vertically, similar to a helicopter, before transitioning into forward flight using tilt rotors. The aircraft boasts a top speed of 200 mph, a range of 150 miles on a single charge, and is touted as being 100 times quieter than conventional aircraft.

Future Plans

Recently, Joby conducted exhibition flights in Manhattan and is set to begin commercial passenger flights in major cities including New York City and Los Angeles by 2025.