Joby Aviation experienced a significant boost in investor confidence after announcing a new $250 million investment round led by Japanese auto giant Toyota. The fresh funding, which includes contributions from other unnamed investors, will help Joby scale up its electric vertical takeoff and landing (eVTOL) aircraft production. Following the announcement, Joby’s shares surged as much as 10%, underlining the market’s positive reception of the deal and its implications for the future of air mobility.
This latest funding brings Toyota’s total investment in Joby Aviation to approximately $400 million, reinforcing its long-standing commitment to the startup. Toyota has been a strategic partner of Joby since 2020 and has played a key role in advising the company on lean manufacturing processes and scalable production strategies. The continued support from one of the world’s largest automakers is seen as a major vote of confidence in Joby’s technology and commercial viability.
Joby Aviation is working toward developing a fully electric aircraft capable of vertical takeoff and landing, which is designed to serve as an air taxi in urban environments. With a maximum range of 100 miles and a top speed of 200 mph, the aircraft is intended to reduce traffic congestion and emissions in densely populated areas. The company has already received certification from the Federal Aviation Administration (FAA) for several critical systems and has conducted over 1,000 test flights to date.
The fresh infusion of capital will be used primarily to fund Joby’s ongoing certification efforts with the FAA, expand its manufacturing capabilities, and support initial commercial operations planned for 2025. The company is building its first scaled manufacturing facility in Dayton, Ohio—a project expected to create thousands of jobs and establish a central hub for future eVTOL production in the U.S.
Toyota’s involvement goes beyond financial backing. The automaker is actively collaborating with Joby on engineering and design processes, including supply chain management and automation. This partnership is seen as mutually beneficial, with Toyota gaining a foothold in the emerging electric aviation sector, and Joby leveraging decades of automotive expertise to optimize aircraft production.
Industry analysts have largely welcomed the announcement, citing growing momentum in the eVTOL market. With increasing investment from both public and private sectors, urban air mobility is inching closer to commercial reality. However, challenges remain, including regulatory hurdles, air traffic integration, and public acceptance. Analysts also note that while Joby is ahead of many competitors in terms of FAA certification and flight testing, its long-term success will depend on its ability to scale operations and maintain safety standards.
The market for urban air mobility is expected to grow significantly over the next decade, with potential applications ranging from passenger transport and emergency response to logistics and tourism. Several major companies, including Archer Aviation, Lilium, and Vertical Aerospace, are also racing to develop their own eVTOL solutions. Joby’s partnership with Toyota, however, gives it a unique edge in manufacturing efficiency and scalability—key factors that could determine who leads the market when full-scale operations begin.
Toyota’s latest investment in Joby Aviation not only boosts the startup’s financial position but also solidifies a strategic alliance that could shape the future of electric aviation. As Joby moves closer to FAA certification and commercial deployment, its partnership with a manufacturing powerhouse like Toyota could be the differentiating factor that sets it apart from rivals. The aviation and automotive industries are increasingly converging around innovation, and this collaboration represents a bold step toward a more sustainable and efficient future in transportation.