Shares of Joby Aviation (JOBY), a developer of electric air taxis, surged 25% today. The rally came after Joby secured the first $250 million tranche of its $500 million investment deal with the Japanese automotive giant, Toyota Motor (TM), boosting investor confidence in its air taxi ambitions.
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According to the SEC filings, Joby issued and sold 49.7 million shares to Toyota at $5.03 each on May 22. With this investment, Toyota now holds a 15.3% stake in Joby Aviation, making it Joby’s largest shareholder.
Importantly, Toyota is now Joby’s “preferred manufacturing partner,” helping design, develop, and build its electric air taxis. Together, the companies aim to streamline production, improve efficiency, and set up low-volume commercial manufacturing for early market entry.
It must be noted that Toyota first backed Joby in 2018 through its venture arm, then deepened its involvement in 2020. The latest investment shows TM’s strong belief in Joby’s air taxi plans.
Toyota Betting Big on Joby
Toyota’s funding will support certification and commercial production, helping Joby scale its operations and bring air taxis closer to reality.
Joby is aiming for a launch in Dubai by early 2026, which is a slight delay from its previous target of the end of this year. The company is still awaiting certification for flight operations from the U.S. Federal Aviation Administration (FAA) and regulatory bodies in other countries.
Is Joby Stock a Good Buy?
Turning to Wall Street, JOBY stock has a Moderate Buy consensus rating based on four Buys, one Hold, and two Sells assigned in the last three months. At $8, the average Joby Aviation stock price target implies a 6.21% downside potential.
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