Toyota invests $250 million in Joby Aviation for air taxis

Published 27/05/2025, 21:18
Toyota invests $250 million in Joby Aviation for air taxis

SANTA CRUZ, Calif. - Joby Aviation, Inc. (NYSE:JOBY), a pioneer in the development of electric air taxis with a market capitalization of $5.25 billion, has announced the completion of a $250 million funding tranche from Toyota Motor Corporation. This investment is part of a strategic partnership aimed at accelerating the certification and commercial production of Joby’s electric air taxi. According to InvestingPro data, the company maintains impressive gross profit margins of 53%.

The collaboration between Joby and Toyota is set to enhance the manufacturing processes and optimize the design of Joby’s air taxis, leveraging Toyota’s production expertise. With a beta of 2.34, Joby’s stock shows significant volatility compared to the broader market. JoeBen Bevirt, Joby’s founder and CEO, expressed that the investment is a significant step in their alliance, aiming to scale electric flight to meet market demands.Want deeper insights? InvestingPro subscribers have access to over 10 additional ProTips and comprehensive analysis for Joby Aviation, including detailed Fair Value estimates and financial health scores.

Tetsuo "Ted" Ogawa, CEO of Toyota North America, echoed the sentiment, highlighting the investment as a reflection of a shared vision for air mobility and a commitment to bringing this future to life.

Based in California, Joby Aviation is working on an all-electric, vertical take-off and landing air taxi service, which it plans to offer in urban areas around the globe. The company’s approach promises a fast, quiet, and convenient mode of transportation. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 17.72, indicating robust liquidity to fund its operations.

The press release also contains forward-looking statements regarding the anticipated progress and impact of the strategic partnership on Joby’s aircraft development and its urban air mobility market presence. These statements are subject to various risks and uncertainties that could affect actual outcomes. According to InvestingPro analysis, while the company holds more cash than debt on its balance sheet, current Fair Value calculations suggest the stock may be slightly overvalued at current levels.

This news is based on a press release statement from Joby Aviation, Inc. and does not include any additional analysis or opinion. The information presented is factual, with an emphasis on the new investment and its intended purpose within the broader context of Joby’s business operations and goals.

In other recent news, Joby Aviation reported its first-quarter earnings for fiscal year 2025, revealing a smaller-than-expected loss. The company posted an earnings per share (EPS) of -$0.11, surpassing the forecasted -$0.19. Joby Aviation’s financial position remains strong, with cash and short-term investments totaling $813 million. Cantor Fitzgerald maintained its positive outlook on Joby Aviation, reiterating an Overweight rating with a price target of $9.00, citing the company’s potential in the electric vertical takeoff and landing (eVTOL) sector. The firm highlighted Joby’s strategic partnerships with Toyota, Delta Air Lines, and the Department of Defense as key differentiators. Joby Aviation is progressing with its Dubai flight testing and manufacturing expansion, aiming to launch its commercial service by early 2026. The company is also advancing toward FAA certification and expanding its manufacturing facilities in California and Ohio. These developments emphasize Joby’s strategic focus on innovation and market expansion.

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