Toyota Surprises Industry with $500M Investment to Boost Electric Air Taxi Development

Toyota, known for its cautious stance on electric vehicles, has boldly invested an additional $500 million in Joby Aviation, a leader in electric air taxis. This investment strengthens Toyota’s partnership with Joby as it nears the final stage of certification for its eVTOL aircraft.

Toyota Strengthens Its Commitment to Electric Air Taxis with a $500 Million Investment in Joby Aviation

Toyota has historically been recognized for its cautious approach to electric vehicles (EVs). However, the company has prioritized expanding its hybrid lineup to achieve future development. Nevertheless, the automaker has unexpectedly decided to double down on its partnership with Joby Aviation, a company developing electric air taxis.

At first glance, Toyota’s investment in electric air taxis seems at odds with its stance on EVs. Toyota has expressed skepticism about battery technology's readiness to fully support electric vehicles, citing concerns over economic viability and consumer demand. In a report by Wccftech, these challenges are even more pronounced in the electric air taxi space, where weight-to-thrust ratios are critical to keeping consumer costs manageable.

Yet, despite these concerns, Toyota has decided to increase its backing of Joby Aviation. The automaker announced an additional $500 million investment to support Joby’s efforts in certifying and commercially producing electric air taxis. This investment, which will be made in two equal tranches in 2024 and 2025, also grants Toyota an equity stake in Joby. With this new funding, Toyota’s total investment in Joby has reached $894 million

For context, Joby Aviation is currently in the fourth stage of a five-stage certification process that, once completed, will allow the company to begin commercial production of its electric vertical takeoff and landing (eVTOL) aircraft.

Amid Slowing Auto Sales, Toyota Bets on Electric Air Taxis as Sales of Electrified Vehicles Surge

This investment comes as Toyota faces significant challenges in its core automotive market. The company’s U.S. auto sales plummeted by 20 percent in September, contributing to a roughly 8 percent decline in sales for the third quarter. However, Toyota’s sales of electrified vehicles—including hybrids and battery electric vehicles (BEVs)—surged by 38.6 percent during the same period.

On a global scale, Toyota’s year-to-date sales have fallen by 1.1 percent to 6.577 million vehicles, with much of this decline driven by stiff competition in China and a downturn in Japan. Despite these headwinds, Toyota’s bold bet on electric air taxis signals its willingness to explore new frontiers in electrification, even as it remains measured in its approach to traditional EVs.