Toyota and Joby Aviation have incorporated a Delaware joint venture to manufacture Joby’s S4 electric vertical takeoff aircraft. Toyota will own 51% and control three of the five board seats.
The JV has only about $2 million in nominal capital, so the story is control, not cash. Toyota is lending its production system to scale an unproven aircraft, while tying its larger investment to key milestones.
The terms: The companies signed a stockholders agreement to create Joby Toyota Aero Manufacturing Preparation Company.
Toyota invested about $1.02 million for 51%; Joby about $980,000 for 49%
Toyota controls three of the five board seats
Toyota has consent rights over the budget, business plan, M&A, any IPO, debt and dividends above set thresholds
The real money: It sits outside the JV. Under a stock purchase agreement in Joby, Toyota has a second tranche of $250 million to release, tied to the JV signing an exclusive manufacturing supply agreement and on progress toward FAA type certification.
The first $250 million tranche has already closed. Toyota's total investment in Joby reached $894 million as of late 2024, and its stake now stands at 13.1%, the largest of any institutional shareholder.
The catch: Commercial eVTOL operations are still in early stages. Joby has not yet received FAA type or production certification and has not entered commercial service. It currently builds aircraft at a pilot line in Marina, California, and propeller blades at a plant in Dayton, Ohio.
Across the sector: Toyota is the second major automaker to take an equity and manufacturing stake in an eVTOL startup instead of building one from scratch.
Stellantis is Archer Aviation’s contract manufacturer for the Midnight aircraft, committing up to about $400 million to scale production to 650 aircraft a year in Covington, Georgia, in exchange for Archer equity.
Hyundai has taken a different approach by funding its in-house unit Supernal. Trade outlet The Air Current estimates that investment at more than $1.5 billion, though Hyundai hasn't disclosed a figure.
No filing sets a closing date for Toyota’s second $250 million tranche. The JV documents also do not name a plant, headcount or production timeline.
