Joby Aviation, Inc. (NYSE:JOBY) saw its stock rise 7% on Tuesday after disclosing a manufacturing joint venture with Toyota Motor Corporation to build Joby’s S4 Series electric vertical takeoff and landing (eVTOL) aircraft.
The joint venture will operate under the name Joby Toyota Aero Manufacturing Preparation Company. According to a regulatory filing dated June 29, 2026, Toyota will own 51% of the new entity by purchasing 1,020,000 shares for $1,020,000. Joby will hold the remaining 49% following its purchase of 980,000 shares for $980,000.
Corporate governance of the joint venture is spelled out in the filing. A five-member board will oversee the company, with Toyota designating three directors and Joby designating two. The stockholders agreement anticipates that Joby will grant the joint venture exclusive rights to manufacture the S4 Series and will license relevant intellectual property to the joint venture on a royalty-free basis.
The filing also outlines how Toyota will contribute intellectual property to the project. Toyota will give the joint venture a royalty-free license to any manufacturing intellectual property that is jointly developed. In addition, Toyota will provide a royalty-bearing license to certain Toyota background manufacturing intellectual property.
Both parties committed to continued negotiations over commercial terms. They agreed to negotiate an exclusive manufacturing supply agreement and other commercial arrangements before a first specified funding milestone is reached. The agreement allows either side to terminate the arrangement if the parties cannot reach agreement on those commercial terms.
Future funding is addressed in the filing as well. Additional mandatory capital contributions will become due upon the achievement of funding milestones described in the agreement. The specific dollar amounts for those contributions are to be determined later and will be set out in an amended and restated stockholders agreement.
The filing notes potential regulatory reviews. The transactions described may require filings under the Hart-Scott-Rodino Antitrust Improvements Act and could be subject to review by the Committee on Foreign Investment in the United States.
Finally, the agreement clarifies a condition tied to a previously announced investment. Toyota’s second $250 million investment tranche under a prior stock purchase agreement will not close until the future commercial agreements referenced in the joint venture documentation are executed and effective.
Context and implications
The joint venture formalizes a manufacturing partnership between an aerospace startup and a major automaker, with detailed governance, IP licensing, and funding milestone arrangements recorded in the June 29, 2026 filing. The transaction links the closing of a previously agreed $250 million tranche to the completion of specified commercial agreements.