Toyota is setting up a joint venture with air taxi-maker Joby Aviation to deepen manufacturing ties ahead of a planned additional investment of $250 million.
The joint venture is part of a growing partnership between the carmaker and Joby, which makes electric vertical takeoff and landing (eVTOL) vehicles designed to fly customers on short commuter journeys. Toyota became the Santa Cruz, California-based firm¡¯s largest shareholder last year, and has been working with it to standardize production.
¡°The strategic alliance will initially focus on establishing the groundwork for commercial production, and advancing manufacturing excellence, with particular emphasis on further improving productivity, quality, and cost,¡± the two companies said Tuesday in a statement.
Shares of Joby rose 4.6% to $9.02 as of 3:30 p.m. in New York. The stock is down about 32% this year.
The last tranche of nearly $1 billion in funding by Toyota is expected during the last quarter of 2026 ¡°upon the final approval of the manufacturing supply agreement,¡± Joby said in a separate statement.
Full certification for commercial flight operations by the U.S. Federal Aviation Administration and regulators in other countries is still pending. Joby has previously said it aimed to start commercial passenger services this year, but the exact timeline is unclear and it has pushed back launch dates multiple times.
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