Toyota’s Betting Big on Electric Air Taxis

While we’re still waiting for those flying cars, Toyota is betting high and hard on electric air taxis. The automaker just earmarked another $500 million for Joby Aviation, which increases Toyota’s total support (so far) to nearly 900 million dollars.

Joby is a California-based transportation company that specializes in developing all-electric vertical take-off and landing (eVTOL) aircraft. Why a car company would be interested in eVTOLs isn’t far-fetched, considering the likes of Cadillac and Rolls-Royce have made eVTOL-related announcements in the past. In the commercial space, eVTOLs are being promoted as air taxis, but there are many other potential applications, such as for search and rescue operations and military use. Call it the quiet alternative to helicopters, which sometimes have limited flying hours due to their noise, especially in urban areas.

However, those luxury automaker eVTOL “reveals” appear to be more about stirring up investors than creating an actual product. Joby, for its part, seems to have, um, air under its wings. For example, the company delivered its first eVTOL to the U.S. Air Force last year as part of a contract with the U.S. Department of Defense.

For the public, Joby conducted an exhibition flight in New York to highlight its partnership with Delta Airlines. Joby would be the last-mile (or first-mile) service for Delta customers. Weighing just 4,500 pounds (sans passengers) and with a current range of 100 miles, a Joby aircraft has more than enough power to conduct the home-to-airport shuttle service, which Delta plans to introduce to the New York and Los Angeles markets first.

Don’t think Toyota is a recent bandwagon jumper, though. Since 2019, Toyota has not only invested funds into its partnership with Joby but also embedded its engineers to work with the eVTOL development team. And in 2023, a long-term agreement was made for Toyota to be the supplier of key powertrain and actuation components Joby aircrafts.

The recent half-billion dollar investment, which will be distributed in two splits, one this year and the second in 2025, will hasten eVTOL commercialization. The new cash influx also brings Toyota’s dollar stake to a total of $894 million.

“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo “Ted” Ogawa, Toyota Motor Corporation operating officer. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”

Got a tip? Drop us a line at tips@thedrive.com