Toyota Deepens Commitment to Joby Aviation with Major Investment

Toyota Motor Corp. $TM has executed a $250 million capital infusion into Joby Aviation Inc. $JOBY, marking the completion of the first segment in its previously pledged $500 million support. This move boosts Toyota’s stake in Joby to 15.3%, positioning the Japanese automaker as the startup’s largest shareholder—surpassing even CEO JoeBen Bevirt’s holding.

Investment Timing and Strategic Rationale

The funding had initially been scheduled for completion in 2025. By accelerating the process, Toyota signals elevated conviction in the air taxi sector and its partnership with the California-based innovator. The latest tranche is part of Toyota’s aspiration to push total financing to Joby to $894 million, underlining a strategic alignment between automotive manufacturing expertise and the emerging advanced air mobility industry.

Market Impact and Share Performance

Following the announcement, JOBY shares rose 3.5% to $7.12 in after-hours trading in New York. Despite this uptick, the stock remains approximately 15% lower year-to-date as of Tuesday’s close. The capital injection is likely to provide both operational runway and investor sentiment reinforcement amid competitive and regulatory pressures in the electric vertical take-off and landing (eVTOL) space.

Principal Takeaways from Toyota’s Commitment

1. Toyota secures a leading ownership position in Joby, outpacing the founder and CEO;

2. The first $250 million delivery suggests heightened urgency and optimism regarding eVTOL market potential;

3. Further funding from Toyota is anticipated later in the year, which may amplify Joby’s development and commercialization efforts;

4. The evolving share structure and funding cadence may influence industry confidence and trigger strategic moves among competitors.

Strategic Outlook for the Air Mobility Sector

Toyota’s active stake in Joby Aviation illustrates a significant convergence between legacy automotive manufacturing and next-generation air transportation. The investment strategy reinforces Joby’s capacity to scale, attract regulatory approvals, and accelerate commercialization. In parallel, the evolving dynamics can reshape competitive positioning in both urban air mobility and broader clean transportation markets.