Companies establish venture to produce electric aircraft
Joby Aviation, Inc. (NYSE:JOBY) shares rose 7% on Tuesday after the company announced a manufacturing joint venture with Toyota Motor Corporation to build Joby’s S4 Series electric vertical take-off and landing (eVTOL) aircraft.
According to a regulatory filing dated June 29, 2026, the new entity, Joby Toyota Aero Manufacturing Preparation Company, will be owned 51% by Toyota and 49% by Joby.
Toyota will acquire 1,020,000 shares in the joint venture for $1,020,000, while Joby will purchase the remaining 980,000 shares for $980,000.
Toyota to hold majority control
The joint venture will be overseen by a five-member board, with Toyota appointing three directors and Joby selecting two.
Under the shareholder agreement, Joby is expected to grant the venture exclusive manufacturing rights for its S4 Series aircraft and provide a royalty-free licence covering the relevant intellectual property.
Toyota will also contribute manufacturing expertise by granting a royalty-free licence for jointly developed manufacturing intellectual property, alongside a royalty-bearing licence covering certain pre-existing Toyota manufacturing technologies.
Additional agreements and funding milestones remain
The companies have agreed to negotiate an exclusive manufacturing supply agreement and other commercial arrangements before reaching the first funding milestone outlined in the transaction.
Either party will have the right to terminate the agreement if they fail to reach terms on those commercial agreements.
The venture will also require additional capital contributions as future funding milestones are achieved, with the investment amounts to be determined in an amended and restated shareholder agreement.
The transaction may also require regulatory filings under the Hart-Scott-Rodino Antitrust Improvements Act and could be reviewed by the Committee on Foreign Investment in the United States.
The filing further noted that completion of Toyota’s second $250 million investment tranche under a previously announced stock purchase agreement remains conditional on the execution and effectiveness of the future commercial agreements.