Toyota goes sky-high: $250 million boost for flying taxi firm Joby Aviation

Toyota has invested another $250 million in Joby Aviation, making it the startup’s largest shareholder with a 15.3% stake. The eVTOL maker plans to launch commercial flying taxi services by 2026, pending regulatory clearance.

Toyota Motor Corporation has officially deepened its bet on the future of urban air mobility, investing $250 million into Joby Aviation Inc., a leading US-based electric air taxi startup. With this move, Toyota becomes Joby’s largest shareholder, now holding a 15.3% stake, reportedly surpassing even Joby’s founder and CEO JoeBen Bevirt.

This latest funding is part of a previously announced $500 million commitment, which will ultimately raise Toyota’s total investment in Joby to $894 million, reports Bloomberg. The remaining $250 million tranche is expected to close later this year, according to company officials.

Toyota began backing Joby in 2020, initially through its venture capital arm. The Japanese automaker has since transformed from a traditional carmaker into a key player in next-gen transportation, including electric vertical takeoff and landing (eVTOL) aircraft.

Joby Aviation, based in Santa Cruz, California, is developing battery-powered flying taxis aimed at short, intra-city travel. The company plans to launch commercial air taxi services in Dubai by early 2026, pending regulatory approvals from the U.S. Federal Aviation Administration (FAA) and global aviation bodies.

Joby’s stock responded positively to the announcement, rising 3.5% to $7.12 in after-hours trading on Tuesday, despite being down 15% year-to-date.

"This milestone further cements the collaboration and alignment between our two companies," said Tetsuo 'Ted' Ogawa, CEO of Toyota North America.

If successful, Joby's air taxis could mark a paradigm shift in urban mobility, turning congested roads into aerial highways and placing Toyota firmly at the forefront of the Jetsons-style transport era.