According to the latest Toyota news, Toyota’s $500 million investment shows its confidence in Joby Aviation’s vision of revolutionizing air travel. This new investment is broken into two equal tranches of $250 million each. The first tranche is expected to be closed by the end of 2024 and the second is scheduled for 2025.
The cumulative total of Toyota’s investment in Joby now stands at $894 million. The previous major injection came in 2020 when Toyota invested $394 million in the air taxi startup.
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According to the latest Toyota news, Toyota’s $500 million investment will be made in two equal tranches with the first tranche expected to close by the end of 2024 and the second in 2025. This investment will bring Toyota’s total stake in Joby Aviation to $894 million.
The funding supports the certification and production of Joby’s electric air taxi, as well as to establish a manufacturing alliance aimed at scaling Joby’s aircraft for commercial use.
The agreement includes regulatory approval and other conditions necessary for the finalization of commercial and collaborative agreements particularly for the second tranche.
The primary goal behind Toyota’s fresh investment is to support Joby’s Type 2 certification process with the Federal Aviation Administration (FAA).
According to the latest Toyota news, Currently, Joby is in the fourth stage of the five-phase certification journey, a necessary step before launching its commercial air taxi services.
In addition to aiding the certification process, the funds will also go toward expanding Joby’s manufacturing capabilities.
The company recently rolled out its third aircraft from its production line in Marina, California and plans to scale its manufacturing with a new expanded facility. This will boost Joby’s ability to meet anticipated commercial demand.
Toyota and Joby Aviation’s partnership dates back to 2019, when the automaker first began providing support beyond financial backing.
Toyota shared its Toyota Production System known for its efficiency in planning, development and manufacturing methods with Joby’s engineering team.
Toyota’s engineers work side by side with Joby’s team in California to design and streamline production systems integrating cutting-edge automotive manufacturing techniques into the production of eVTOL aircraft.
In 2023, the two companies entered into an agreement allowing Toyota to supply powertrain and actuation components for Joby’s aircraft.
Joby’s all-electric eVTOL aircraft has been the centerpiece of the company’s efforts to redefine urban air mobility. The aircraft is designed to seat five people including the pilot and is equipped with six rotors that enable vertical takeoff and landing.
The aircraft can reach speeds of up to 200 mph and cover distances of 150 miles on a single battery charge.
According to the latest Toyota news, Over the last few years, Joby has made strides in its development efforts including completing test flights on its private airfield in Northern California and demonstrating the eVTOL in cities like New York as part of exhibition flights in Manhattan.
Joby is navigating through the rigorous FAA certification process, a mandatory procedure that ensures aircraft safety and reliability before they can enter commercial service.
The company is progressing in the fourth stage out of five and this additional investment is intended to help it clear the final stages.
Joby plans to launch its commercial air taxi service by 2025. Major cities like New York City and Los Angeles are expected to be the first to benefit from these air taxi services.
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Joby Aviation, founded in 2009 and listed on the New York Stock Exchange in 2021. It is a pioneer in the development of eVTOL aircraft.
The company has raised more than $2 billion in capital prior to Toyota’s latest investment. Joby’s aircraft is the first eVTOL to have its certification plans accepted by the FAA, positioning the company as a leader in urban air mobility.
The company was founded in 2009 by JoeBen Bevirt, Joby Aviation initially operated under the radar before its breakthrough came in 2018 with a $100 million funding round.
Major players like Intel, JetBlue and Toyota were among the participants in this funding effort, fueling the company’s R&D activities and accelerating the development of its prototype.
In 2020, Joby acquired Uber Elevate, Uber’s air taxi arm, in a complex deal. As part of the agreement, Uber invested $75 million in Joby and the two companies deepened their partnership. This acquisition allowed Joby to integrate Uber’s ride-sharing expertise into its future air taxi business model.
In 2021, Joby Aviation took another step forward by going public through a SPAC merger with Reinvent Technology Partners, a special purpose acquisition company spearheaded by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus.
Toyota has a history of investing in aeronautics, dating back to its founder Sakichi Toyoda, who in 1925 offered a ¥1 million prize for the invention of a storage battery that could power long-range cars and airplanes.
According to the latest Toyota news, Joby is planning to launch its first commercial passenger service in Dubai in 2025. The planned launch comes at a time when the demand for sustainable transportation solutions in urban environments is growing and air taxis are seen as a part of the future of mobility.
With Toyota’s investment and support, Joby is well on its way to realizing its goal of making emission-free urban air travel a reality.
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