Toyota Motor Corporation and Joby Aviation have revealed a new agreement, in which Toyota will inject an extra $500 million to aid in the certification and commercial manufacturing of Joby's electric air taxi. This move aims to bring to life the joint vision of both companies for air mobility.
The investment will be split into two equal parts, pending standard regulatory approvals, other specified conditions, the completion of collaborative and commercial agreements, and, for the second part, the finalization of terms related to a strategic alliance focused on commercial manufacturing and other conditions. Toyota Motor Corporation's total investment in Joby will amount to $894 million, with the funds being provided in cash in exchange for common stock. The first instalment is expected to be completed later this year, followed by the second in 2025. Additional information about the investment can be found in the companies' filings with the SEC.
“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO, Joby Aviation. “The knowledge and support shared by Toyota has been instrumental in Joby’s success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”
Joby is making significant strides in advancing towards commercialization. Recently, the company completed the production of its third aircraft at its pilot line in Marina, California, and initiated the construction of a larger facility in California, which will significantly increase its manufacturing capacity. As of August 2024, Joby has confirmed that it has progressed more than one-third through the fourth stage of the type certification process.
“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo “Ted” Ogawa, who signed the agreement as the Operating Officer on behalf of Toyota Motor Corporation. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
Toyota's increased investment demonstrates the ongoing commitment of the founding family of Toyota Motor Corporation, from Kiichiro Toyoda to current Chairman Akio Toyoda, to fulfil the vision of air transportation for personal or daily use as they transition into a mobility-focused company.
Since 2019, Toyota has not only made financial investments but has also dedicated time and manpower to impart its expertise in the Toyota Production System through process planning, manufacturing method development, and tooling design. Presently, Toyota engineers collaborate closely with the Joby team in California. In 2023, the two companies entered into a long-term agreement for Toyota to provide essential powertrain and actuation components for Joby's aircraft manufacturing.
Toyota initially connected with Joby through an initial investment from Toyota Ventures, the early-stage venture capital division of Toyota focused on discovering innovative technologies and companies for investment, as well as offering assistance to portfolio companies. Following this, Toyota Motor Corporation went on to invest a total of $394 million in Joby.
The shares being offered in this investment have not been registered, and will not be registered, under the Securities Act of 1933, as amended ("Securities Act"), or the securities laws of any state or other relevant jurisdiction. They may only be offered or sold in the United States under an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and relevant state or other jurisdictions' securities laws. This press release is not an offer to sell or a solicitation of an offer to buy these securities. Furthermore, these securities will not be sold in any state or jurisdiction where such offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of that state or jurisdiction.
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