Joby Aviation’s shares rose 13% on May 28, after Toyota announced a US$250 million investment.

This is part of a previously agreed US$500 million funding commitment to the electric air taxi maker.

The partnership, first revealed in October, aims to help Joby certify and produce its electric vertical takeoff and landing aircraft (eVTOL).

These aircraft are designed to ease traffic congestion and cut emissions by taking off and landing like helicopters.

In 2020, Toyota invested US$394 million in Joby.

Competitors in the eVTOL space include Archer Aviation, which is partnering with United Airlines to develop an airport air taxi service.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Toyota’s deep strategic bet on electric aviation spans over six years

Toyota’s $250 million payment represents more than just a financial investment but a multi-year strategic commitment to transform aviation through electric technology.

The automaker first entered the eVTOL space through Toyota AI Ventures’ participation in Joby’s $100 million Series B round in 2018, followed by a substantial $394 million investment in 2020 1.

Toyota’s involvement extends beyond capital to include critical manufacturing expertise, with JoeBen Bevirt specifically highlighting how Toyota is helping “streamline manufacturing processes and optimize design” for commercial production 2.

This sustained commitment reflects Toyota’s diversification strategy beyond traditional automotive markets into next-generation transportation solutions, positioning the company in multiple segments of the future mobility ecosystem.

The partnership demonstrates how automotive giants are leveraging their manufacturing expertise to help solve one of the most challenging aspects of electric aviation: scaling production from prototypes to commercial fleets.

2️⃣ The race to commercialize electric air taxis intensifies with major airline partnerships

Joby’s progress is part of a heated competition to bring electric air taxis to market, with its primary competitor Archer Aviation securing similar strategic partnerships and capital.