Toyota Motor Corp. NYSE:TM is expanding its partnership with Joby Aviation NYSE:JOBY through a new joint venture aimed at strengthening manufacturing ties ahead of Toyota's planned additional $250 million investment. The move adds another layer to the relationship between the Japanese automaker and the Santa Cruz-based air taxi company, which is developing electric vertical takeoff and landing aircraft for short commuter trips.
The new alliance is expected to focus first on laying the foundation for commercial production and improving manufacturing execution. Toyota and Joby said the work will emphasize productivity, quality, and cost, as the companies continue efforts to standardize production before Joby moves closer to broader commercial operations.
Joby shares rose 4.6% to $9.02 in New York trading, though the stock remains down about 32% this year. Toyota's final tranche of nearly $1 billion in funding is expected in the last quarter of 2026, pending final approval of the manufacturing supply agreement, while full certification for commercial flight operations from the FAA and regulators in other countries remains pending.