Joby (JOBY.US) partners with Toyota (TM.US) to create a "flying" air taxi entering the fast lane of mass production.

On Tuesday, the electric Vertical Takeoff and Landing (eVTOL) aircraft manufacturer Joby Aviation (JOBY.US) announced that they have formally signed a shareholder agreement with Toyota Motor Corp. Sponsored ADR (TM.US) to jointly establish a joint venture manufacturing company responsible for producing Joby's S4 series air taxis. According to regulatory filings, the joint venture company is named Joby Toyota Aero Manufacturing Preparation Company (JTAMPC), with Toyota holding 51% stake and Joby holding the remaining 49%. In the initial investment stage, Toyota invested $1.02 million to acquire 1.02 million shares of common stock, while Joby invested $0.98 million to acquire 0.98 million shares of common stock. The board of directors of JTAMPC will consist of 5 directors, with Toyota having the right to appoint 3 directors and Joby appointing 2. However, certain major decisions must adhere to specific ownership threshold. In terms of day-to-day governance, amendments to business plans, mergers, major asset sales, and equity issuances require joint approval from both parties; while matters such as borrowing and dividend distribution require Toyota's consent. In terms of intellectual property and business arrangements, Joby will grant exclusive manufacturing rights for the S4 series models to the joint venture company, and license related manufacturing technologies on a royalty-free basis; while Toyota will authorize their own manufacturing-related intellectual property. The two parties have also agreed to negotiate an exclusive manufacturing supply agreement and other business and intellectual property arrangements before reaching the first funding milestone. The agreement also includes provisions for mandatory additional capital injection when specific development or funding milestones are achieved. This joint venture marks a further deepening of collaboration between Joby and Toyota. Joby is actively seeking regulatory approval for commercial eVTOL operations to seize the first-mover advantage in the urban air mobility market. Its S4 electric aircraft features a hexarotor design, allowing vertical takeoff and landing like a helicopter and transitioning to fixed-wing flight during cruising, with capacity for 1 pilot and 4 passengers. Earlier this year, Joby successfully completed a week-long point-to-point air taxi demonstration flight in New York, showcasing its operational capabilities in a real urban environment.