In a significant move to bolster its electric air taxi project, JOBY Aviation (NYSE:JOBY) has announced a major financial backing from automotive giant Toyota Motor Corporation (NYSE:TM).
According to a recent Securities and Exchange Commission filing, Toyota will invest approximately $500 million in JOBY Aviation through a private placement stock purchase agreement.
This investment will see Toyota acquiring up to 99,403,579 shares of JOBY’s common stock at a price of $5.03 per share.
The investment will be executed in two stages, with each tranche amounting to $250 million.
This strategic funding is aimed at enhancing JOBY Aviation’s liquidity to further its ambitious goals, including the certification and commercial production of its pioneering electric air taxi.
JOBY Aviation plans to allocate the net proceeds from this substantial capital infusion towards working capital and general corporate purposes.
Following the announcement, JOBY Aviation's share price rose over 20% to $4.80 in premarket trading.