June 30 - Joby Aviation and Toyota Motor said on Tuesday they have formed a joint venture to manufacture Joby’s S4 Series air taxi as the electric aircraft maker works toward obtaining government approval to operate commercially.
The new company, named the Joby Toyota Aero Manufacturing Preparation Company or JTAMPC, will be governed by a five-member board made up of two directors from Joby and three from Toyota, the firms said. Under the agreement, Joby will provide the joint venture with exclusive manufacturing rights for the S4 Series and will license the related intellectual property to the JV on a royalty-free basis.
Ownership of JTAMPC will be split with Joby holding 49% and Toyota holding the remaining 51%.
Joby, headquartered in Santa Cruz, California, reported that its shares rose 7% in premarket trading on the announcement.
The joint venture arrangement positions JTAMPC as the sole manufacturer of the S4 Series, concentrating production responsibility within the new entity and creating a formal pathway for scaling manufacturing should regulatory approvals be secured.
Earlier this year Joby completed a week-long series of demonstration flights - the company’s first point-to-point air taxi demos in New York City - part of the process to validate operations as it seeks clearance for commercial service.
The S4 Series aircraft is described by the company as a six-rotor, all-electric vehicle capable of vertical takeoff and landing like a helicopter, while cruising horizontally like an airplane. The aircraft is configured to carry a pilot plus four passengers.
The announcement underscores the industry-wide push among air taxi developers to both secure regulatory approval and move toward commercial manufacture and service. For Joby, the JV formalizes a manufacturing structure tied to a major automotive partner, while Toyota gains a controlling interest in the manufacturing vehicle for the S4 Series.
Summary
Joby and Toyota have created JTAMPC, a joint venture in which Toyota holds a 51% stake and Joby 49%. The JV will have exclusive rights to build Joby’s S4 Series aircraft and will receive a royalty-free license to relevant intellectual property. Joby shares rose 7% in premarket trading following the announcement. The move follows a recent week-long point-to-point air taxi demonstration in New York City as Joby pursues government approval to commercialize its eVTOL aircraft.
Key points
- JTAMPC will be governed by two Joby directors and three Toyota directors, and will hold exclusive manufacturing rights for the S4 Series - sectors impacted: aerospace manufacturing, transportation.
- Joby will license intellectual property to the JV on a royalty-free basis and will own 49% of the venture - sectors impacted: manufacturing, investment markets.
- Joby recently completed a week-long point-to-point air taxi demonstration in New York City as it seeks government approval for commercial operations - sectors impacted: urban transportation, regulatory oversight.
Risks and uncertainties
- Regulatory approval remains an outstanding requirement for commercial deployment; the companies are still seeking government clearance - impacts: aerospace, urban transport services.
- Other air taxi firms are competing to secure approvals and commercialize eVTOL aircraft, creating execution and market-competition uncertainty - impacts: transportation, aerospace manufacturing.
- Joby has granted the JV exclusive manufacturing rights for the S4 Series, concentrating production dependency within JTAMPC - impacts: manufacturing, supply-chain resilience.