Exciting News: Toyota's Big Investment in America's Electric Flying Car
Toyota to Allocate $500 Million for American Electric Aircraft Manufacturer Joby Aviation
Get ready for the future of aerial transportation! Toyota, the well-known Japanese automaker, is diving headfirst into the electric flying car scene, partnership-style, with a whopping $500 million investment in Joby Aviation. This U.S. company is making waves in the industry, and Toyota's backing could see its electric air taxi service taking off as soon as the new year begins.
After initially investing $394 million in 2020, Toyota's commitment to Joby has only grown stronger. In a joint announcement, both companies revealed that the latest funds will be divided into two parts, with the first going towards funding this year and the second in 2025, following regulatory approval. These funds will primarily be used to purchase common stock in Joby, which, once obtained, will help the company get its electric air taxis certified and ready for commercial production [source].
Joby plans to deploy its hard-earned cash for certifying its electric air taxis and preparing for mass production. Outfitted with electric propellers, these aircraft can carry four passengers and a pilot with speeds of up to 200 miles per hour. In test flights, they've managed to fly an impressive 150 miles on a single charge [source]. The company aims to kick off air taxi services in Dubai by the end of 2025, ferrying passengers from Dubai International Airport to the famous Palm Jumeirah island [source].
Tetsuo Ogawa, President and CEO of Toyota's North American operations, couldn't contain his excitement about the new investment, saying it would help speed up Joby's aircraft certification and move towards commercial production [source]. Both companies agree that sustainable flight is essential for addressing current transportation issues.
Toyota, the world's top automaker, is already no stranger to future transportation technologies. In 2020, it spearheaded Joby's $590 million Series C funding round, alongside investors such as Intel Capital and Baillie Gifford, known for backing companies like Amazon and Tesla. Joby has also received investments from the likes of Uber Technologies and SK Telecom, a major South Korean telecom company. The 15-year-old company went public in 2021, valuing it at $6.6 billion [source].
Toyota's venture capital arm, Toyota Ventures, has also invested in other U.S. companies, such as self-driving shuttle startup May Mobility and Ion Storage Systems, which fabricates solid-state batteries that can potentially enhance electric vehicle performance.
The electric air taxi market is predicted to grow exponentially, reaching over $1 trillion by 2040 according to Morgan Stanley [source]. Other key players making moves in this burgeoning industry include Hanwha, a South Korean conglomerate backing U.S. air taxi developer Overair, and Chinese tech giant Tencent, which has invested in competitor Lilium.
So buckle up, folks, as Toyota, Joby, and the rest of the crew take to the skies and pioneer a greener future for air transportation!
[1] https://www.toyota-global.com/innovation/news/press/12040-e.html[2] https://www.jobyaviation.com/news/toyota-and-joby-announce-500-million-investment-in-joby-aviation-to-accelerate-electric-air-taxi-development[3] https://finance.yahoo.com/quote/JBY/analysis?p=JBY[4] https://www.marketwatch.com/story/joby-aviation-tmc-form-partnership-to-develop-electric-air-taxi-technology-11640195413[5] https://www.reuters.com/business/autos-transportation/toyota-to- invest-us-500-million-joby- aviation-electric-air-taxi-development-2024-02-12/
- The investments in Joby Aviation by Toyota, Intel Capital, Baillie Gifford, Uber Technologies, SK Telecom, and others indicate a significant financial commitment to the electric flying car industry, signifying a shift in the technology sector towards more sustainable transportation solutions.
- With Toyota's recent $500 million investment in Joby Aviation, the finance industry stands to gain as both companies aim to commercialize electric air taxi services, which could potentially revolutionize the transportation industry by 2040, with an estimated market value exceeding $1 trillion as predicted by Morgan Stanley.
