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 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.
This content was originally published on Investing.com
