Toyota Doubles Down on U.S. Electric Flying Car bet with $250M Investment
Toyota Allocates $500 Million for Electric Aircraft Manufacturer Joby Aviation in the U.S.
Dubai was the stage for the unveiling of Joby Aviation's S4 aircraft on February 12, 2024, as Toyota, the Japanese titan of automotive industry, announced it would pump an additional $250 million into the California-based company's electric air taxi services.
Joby's electric flying taxis may soon be airborne as early as next year, following this latest investment from Toyota, its largest external investor since 2020. This paycheck will be divvied up into two chunks – one due by the year's end, and the remaining in 2025 – on acquiring Joby's common stock.
As per the joint statement from both companies, this fresh injection of funds will help Joby bring its electric aircraft through the regulatory approval process and into full-scale production. Listed on the New York Stock Exchange, Joby ardently aims to initiate its air cab services in Dubai by the end of 2025, transporting people from Dubai International Airport to Palm Jumeirah, the iconic palm-shaped island. Joby's aircraft, endorsed by the U.S. Federal Aviation Administration, can ferry four passengers and a pilot, reaching speeds of up to 200 miles an hour, while flying over 150 miles on a single charge in test flights.
Tetsuo Ogawa, leading the charge for Toyota's North American operations, expressed excitement about the investment's potential to speed up Joby's aircraft's certification and advancement towards commercial production. The duo is united in the belief that sustainable aviation technology is crucial for solving today's transportation dilemmas.
In 2020, Toyota spearheaded Joby's $590 million Series C funding round, accompanied by backing from Intel Capital, Scottish investment firm Baillie Gifford, and others like SK Telecom, Uber, and more. Following a public listing in 2021, Joby was valued at $6.6 billion.
Toyota, the planet's foremost automaker, has consistently ventured into future transportation technologies, targeting the eventual inclusion of these innovations within its diverse product portfolio, which already houses electric and hybrid vehicles. Toyota Ventures, its venture capital division, has previously invested in May Mobility, a self-driving shuttle startup, and Ion Storage Systems, specializing in solid-state batteries that may boost electric vehicle performance.
According to Morgan Stanley predictions, the electric air taxi market could swell to a staggering $1 trillion by 2040. Other major players in this expanding industry include Hanwha, a South Korean conglomerate backing U.S. air taxi developer Overair, and Tencent, the Chinese tech colossus, which has thrown its weight behind German competitor Lilium.
Published: 4th October 2024
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Investing in the electric flying taxi industry is a strategic move for Toyota as they announce a $250 million investment in Joby Aviation, aiming to advance sustainable aviation technology. This investment will help Joby's electric aircraft pass through regulatory approval and move towards full-scale production.
In the future, Toyota plans to incorporate these technology advancements into their diverse product portfolio, which includes electric and hybrid vehicles, as they position themselves for a significant role in the projected $1 trillion electric air taxi market by 2040.
