Toyota takes 51% stake in Joby joint venture for eVTOL production

Toyota Motor Corp. took a 51% controlling stake in a new joint venture with Joby Aviation Inc. to manufacture the S4 electric vertical takeoff and landing aircraft, combining the automaker's production expertise with Joby's aviation technology.

"Toyota has been by Joby's side for nearly a decade, providing invaluable guidance and support as we built the foundation for manufacturing our aircraft," said JoeBen Bevirt, founder and chief executive officer of Joby Aviation. "Together, we share a vision of making aerial mobility an everyday reality."

The new Delaware entity, Joby Toyota Aero Manufacturing Preparation Company, gives Toyota three of five board seats under a structure where the Japanese automaker holds 51% and Joby retains the remaining 49%. The initial phase will focus on establishing commercial production foundations, improving manufacturing efficiency, quality and cost control before scaling up to meet anticipated demand for the S4 eVTOL aircraft.

The deal reflects nearly a decade of collaboration between the two companies and shows mainstream automotive commitment to electric aviation, potentially accelerating regulatory pathways and commercialization timelines. Joby intends to both operate its own air taxi service in cities worldwide and sell aircraft to other operators and partners.

Toyota Chairman Akio Toyoda said the partnership reflects a natural extension of the company's mobility philosophy "from the ground into the sky." The automaker has been involved with Joby since 2018, investing $394 million in the company and later increasing its total commitment to $894 million.

JOBY shares rose 5.2% to $9.08 in pre-market trading, snapping a six-day losing streak. The stock carried a 34.6% year-to-date deficit coming into the session but is on track for its first quarterly gain in three. Short interest represents 15.2% of JOBY's available float, equivalent to more than three days of average trading volume.

Wall Street remains cautious on the stock. Of the 11 analysts covering JOBY, six carry a hold rating while only two rate it a buy or better, leaving room for upgrades if the Toyota partnership translates into stronger execution. The stock has a Schaeffer's Volatility Scorecard of 80 out of 100, indicating it has consistently delivered larger moves than options traders have priced in over the past year.

The eVTOL sector has drawn increasing interest from traditional automotive and aerospace manufacturers. Archer Aviation, a Joby competitor, has partnerships with Stellantis and United Airlines, while Boeing-backed Wisk Aero is pursuing its own autonomous air taxi program. Toyota's manufacturing scale could give Joby a production cost advantage over peers as the industry moves from certification toward commercial deployment.

The joint venture is expected to support the expansion of Joby's production capacity to support aircraft certification and meet anticipated demand growth. Joby has not yet disclosed a timeline for first commercial deliveries or the total investment commitment for the manufacturing venture.

This article is for informational purposes only and does not constitute investment advice.