Toyota Takes 51% in Joby eVTOL JV with $1.02M Investment
TM•Toyota Motor will hold a 51% stake in the new Joby Toyota Aero Manufacturing Preparation Company, contributing $1.02 million to launch production of Joby’s S4 eVTOL aircraft and appointing three of five board members. The partnership’s funding and exclusive manufacturing rights could trigger Toyota’s conditional $250 million tranche under a prior stock purchase agreement.
1. Joint Venture Formation
Toyota Motor and Joby Aviation have formed the Joby Toyota Aero Manufacturing Preparation Company in Delaware to produce Joby’s S4 Series electric vertical takeoff and landing aircraft. This new entity establishes a dedicated structure for manufacturing and commercial arrangements.
2. Ownership and Control Structure
Toyota holds a 51% stake in the venture and will appoint three of the five board members, while Joby retains 49% and appoints two directors. Toyota’s majority position grants it decisive control over the entity’s strategic decisions.
3. Financial Terms and Milestones
Toyota will invest $1.02 million by acquiring 1,020,000 shares, while Joby will invest $980,000 for 980,000 shares. Further capital contributions and commercial agreements must be negotiated to reach future funding milestones, and either party may terminate if they fail to finalize terms.
4. Strategic Implications
The venture grants exclusive manufacturing rights for the S4 Series and includes royalty-free and royalty-bearing licenses covering joint and Toyota manufacturing technologies. Completion of Toyota’s second $250 million investment tranche under a prior stock purchase agreement is conditioned on executing these commercial agreements, with regulatory reviews under HSR and CFIUS possible.
