Air taxi maker Joby Aviation spikes 27% following a $250 million Toyota investment

Electric air taxi company Joby Aviation is getting some wind beneath its carbon fiber propellers following an announcement that it received a $250 million investment from Toyota.

The money is half of a larger sum Toyota said it would pour into Joby last October. Toyota, the world’s largest automaker, also invested about $400 million in Joby in 2020. Joby shares shot up 27% in midday trading.

Companies specializing in electric vertical takeoff and landing (eVTOL) aircraft have struck some significant deals lately. In April, Archer Aviation, which was recently selected as the “Official Air Taxi Provider” of the LA Olympics in 2028, said it’s partnering with United Airlines to create an NYC airport shuttle service.

Joby in March said it would partner with Virgin Atlantic to launch its air taxi service in the UK, adding to its exclusive deal with Delta Air Lines.

While air taxi companies are partnering with airlines for shuttle service, they’ve been partnering with automakers for manufacturing. Like Toyota’s production partnership with Joby, Archer has received multimillion-dollar investments from Jeep maker Stellantis. Meanwhile, Hyundai has its own eVTOL startup called Supernal. Plane manufacturers Boeing and Airbus are similarly developing their own electric air taxis.