🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Joby Aviation surges as Toyota plans to invest $500 million in eVTOL company

Published 2024/10/02, 15:12
© Reuters
TM
-
7203
-
JOBY
-

Investing.com -- Shares in Joby Aviation (NYSE:JOBY) surged sharply after Toyota Motor (NYSE:TM) said it would inject an additional $500 million into the electric vertical takeoff and landing (eVTOL) aircraft maker to help advance the certification and production of Joby’s electric air taxis.

The new investment builds on the $394 million Toyota previously committed to Joby as part of their ongoing strategic partnership focused on commercial manufacturing.

The investment, structured as cash for common stock, will be split into two tranches: the first set to close later in 2024, and the second in 2025.

Joby Aviation’s shares soared more than 22% in premarket trading.

Joby noted it continues to make significant strides toward both certification and commercial rollout, recently starting construction on an expanded facility in California.

"Today's investment builds on nearly seven years of collaboration between our companies," said JoeBen Bevirt, founder and CEO of Joby Aviation.

"The knowledge and support shared by Toyota have been instrumental in Joby's success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel."

Toyota engineers are collaborating closely with Joby’s team in California, and last year, the two companies finalized a long-term deal for Toyota to provide key powertrain components and other critical parts for Joby’s aircraft.

“We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges,” said Toyota Motor (TYO:7203) North America CEO Ted Ogawa.

Toyota's involvement with Joby goes beyond financial support. Since 2019, the automaker has shared its expertise in the Toyota Production System, which includes everything from planning and developing manufacturing processes to designing tooling.

Toyota’s shares climbed less than 1% in the premarket trade.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.