Toyota sends first half of US$500 million pledge to air taxi maker

Joby says recently it now aims to start commercial services in Dubai by early 2026 after having previously targeted the end of this year

Published Wed, May 28, 2025 · 07:26 AM

Toyota Motor has invested half of a promised US$500 million investment in Joby Aviation, the air taxi maker said on Tuesday (May 27), making good on a pledge the Japanese carmaker made last year.

The closing of the US$250 million tranche was initially planned for 2024 and comes as part of Toyota’s plan to boost its funding in Santa Cruz, California-based Joby to a total of US$894 million.

A US spokesperson for Toyota confirmed the payment. Joby said earlier this year it expects the second tranche from Toyota to close later this year.

Shares of the air taxi company rose 1.3 per cent to US$6.97 at 5.27 pm in extended trading in New York. The stock closed regular trading on Tuesday down about 15 per cent for the year.

The company is one of several companies focusing on eVTOL, which stands for electric vertical take-off and landing, that plan to fly customers on short commuter journeys via battery-powered air taxis.

“With this capital and Toyota’s legendary production expertise, we are enhancing our ability to scale cutting-edge design and manufacturing to meet the demands of our partners and customers,” JoeBen Bevirt, Joby’s chief executive officer, said.

Joby said recently it now aims to start commercial services in Dubai by early 2026 after having previously targeted the end of this year. Certification for flight operations by the US Federal Aviation Administration and regulators in other countries is still pending.

Toyota began financing Joby in 2020, two years after its venture capital arm participated in a funding round. BLOOMBERG

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