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Toyota has remained visibly hesitant to jump on the global EV bandwagon, instead betting on its growing lineup of hybrids to drive significant growth in the years ahead. Yet, in what is a manifest flip-flop, the company is now doubling down on its partnership with the manufacturer of electric air taxis, Joby Aviation.
Toyota is retarded, this really doesn't bode well for Toyota. Not because of the amount, but because of what it says regarding its decision process. This isn't very different from the beverage companies who sank billions into the MJ bubble.
— Paulo Santos (@ThinkFinance999) October 2, 2024
Prima facie, Toyota's endorsement of electric air taxis does not make much sense. After all, if the battery tech is still too rudimentary for an all-EV bet to stand the tests of economic viability and consumer preference, as Toyota claims, then it is doubly so for electric air taxis, where the weight-to-thrust ratio plays an even more significant role in the consumer-facing cost calculus.
Yet, Toyota, in its infinite wisdom, has now chosen to double down on its existing partnership with Joby Aviation. To wit, the auto giant has announced today that it is investing an additional $500 million to "support the certification and commercial production of Joby's electric air taxi." In return for this cash injection, which will materialize in two equal tranches in 2024 and 2025, Toyota will acquire an equity stake in Joby Aviation.
Do note that today's announcement raises Toyota's total investment in the manufacturer of electric air taxis and eVTOLs to $894 million.
For the benefit of those who might not be aware, Joby Aviation is currently at the fourth stage of a five-stage certification process, whose successful completion will allow the company to start the commercial production of its eVTOL aircraft.
Today's development comes as Toyota's US auto sales plunged by a whopping 20 percent in September! For the third quarter, the sales were down around 8 percent. Interestingly, Toyota's sales of electrified vehicles (hybrids and BEVs) jumped by a whopping 38.6 percent during the 3-month period.
Of course, on an year-to-date basis, Toyota's global sales have declined by 1.1 percent to 6.577 million vehicles, largely due to outsized weakness in China - which is a function of tough competition from local OEMs - and Japan.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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