Toyota To Invest in U.S. Electric Flying Car

A pre-production model of the Joby Aviation S4 aircraft was shown at the World Government Summit in Dubai on February 12, 2024. Toyota, a large Japanese car company, is investing $500 million in Joby Aviation to help the U.S. company launch its electric air taxi service, which could start as soon as next year.

Toyota, already the biggest outside investor in Joby, had previously invested $394 million in 2020. In a joint announcement, the two companies said the new investment will be split into two parts. The first will happen by the end of this year, and the second in 2025, after getting regulatory approval. This money will be used to buy common stock in Joby.

Joby plans to use the money to get its electric air taxis certified and ready for commercial production, according to the statement. The company, which is listed on the New York Stock Exchange, aims to start its air taxi services in Dubai by late 2025, flying people from Dubai International Airport to Palm Jumeirah, the famous tree-shaped island. Joby’s aircraft, once approved by the U.S. Federal Aviation Administration, is built to carry four passengers and a pilot, reaching speeds of up to 200 miles per hour. In a test flight, it has already flown over 150 miles on a single charge.

Tetsuo Ogawa, President and CEO of Toyota’s North American operations, said they are excited about the extra investment, which will help Joby get its aircraft certified and move to commercial production. He added that both companies believe sustainable flight is important for solving today’s transportation problems.

In 2020, Toyota led Joby’s $590 million Series C funding round, which also included investors like Intel Capital and Scottish investment firm Baillie Gifford, known for supporting companies like Amazon and Tesla. Joby has also received investments from SK Telecom, a major South Korean telecom company owned by billionaire Chey Tae-won, as well as Uber Technologies and others. The 15-year-old company went public in 2021 through a merger that valued it at $6.6 billion.

Toyota, the world’s largest automaker, has been investing in future transportation technologies, aiming to eventually add them to its lineup, which already includes electric and hybrid vehicles. Toyota’s venture capital arm, Toyota Ventures, has also invested in U.S. companies like self-driving shuttle startup May Mobility and Ion Storage Systems, which makes solid-state batteries that could improve electric vehicle performance.

Morgan Stanley has predicted that the electric air taxi market could grow to over $1 trillion by 2040. Other companies investing in this emerging industry include South Korean conglomerate Hanwha, which supports U.S. air taxi developer Overair, and Chinese tech giant Tencent, which has invested in German competitor Lilium.

Published: 4th October 2024

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