While we may still be waiting for flying cars, Toyota is making a significant bet on electric air taxis. The automaker recently committed another $500 million to Joby Aviation, a move that brings Toyota’s total investment in the company to nearly $900 million.
Joby Aviation, based in California, specializes in the development of all-electric vertical take-off and landing (eVTOL) aircraft. It’s not surprising that Toyota would be interested in this cutting-edge technology, considering other luxury carmakers like Cadillac and Rolls-Royce have made their own announcements regarding eVTOLs in recent years. While commercial eVTOLs are primarily being positioned as air taxis, their potential extends beyond that. These aircraft could be used for search and rescue missions, military applications, and more. They also offer a quieter alternative to helicopters, which are often restricted in urban areas due to noise concerns.
However, some of the eVTOL “reveals” from automakers appear more focused on attracting investors than delivering a functional product. Joby, on the other hand, is proving it has serious momentum. For instance, the company delivered its first eVTOL to the U.S. Air Force as part of a contract with the Department of Defense.
Joby is also making strides in the public transportation sector. The company recently conducted an exhibition flight in New York to showcase its partnership with Delta Airlines. Joby aims to provide last-mile or first-mile shuttle services for Delta customers, starting in New York and Los Angeles. Weighing 4,500 pounds without passengers and boasting a range of 100 miles, Joby’s eVTOLs are more than capable of handling these short trips to and from the airport.
Toyota, far from being a newcomer to the eVTOL space, has been involved with Joby since 2019. In addition to financial support, Toyota has embedded its engineers within Joby’s development team to assist with the creation of the aircraft. In 2023, Toyota further solidified its role as a key supplier for the powertrain and actuation components of Joby’s eVTOLs.
Toyota’s latest $500 million investment, which will be distributed in two phases—one this year and another in 2025—aims to accelerate the commercialization of eVTOL technology. This infusion of capital brings Toyota’s total financial commitment to Joby to $894 million.
“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo “Ted” Ogawa, Toyota Motor Corporation operating officer. “We share Joby’s vision that sustainable flight will play a crucial role in solving today’s persistent mobility challenges.”
Toyota’s continued involvement underscores its belief that electric air taxis could help alleviate congestion and revolutionize urban mobility in the near future.
By Impact Lab