Joby Aviation Stock Takes Off After Toyota Emerges As Top Shareholder: Retail’s Bullish

Joby Aviation (JOBY) stock gained over 7% in premarket trade on Wednesday after Toyota closed an initial $250 investment in the air taxi maker.

Toyota began investing in Joby in 2020 and has pledged to invest a total of $894 million.

The investment, announced last year, has lifted the automaker’s stake to 15.3%, exceeding Joby Chief Executive Officer JoeBen Bevirt, according to a Bloomberg report.

“The investment is aimed at supporting certification and commercial production of Joby’s electric air taxi,” the company said before adding that it puts the two companies a step closer toward a strategic manufacturing alliance.

Joby and its competitors are trying to take the lead in the nascent electric vertical lift off and landing (eVTOL) industry. Many large cities worldwide consider eVTOLs as an alternative to road travel to reduce traffic congestion.

The company aims to operate its first passenger flights in Dubai by early 2026. However, it has yet to receive flying licenses from the Federal Aviation Administration and other regulators.

Retail sentiment on Stocktwits was in the ‘bullish’ (63/100) territory, while retail chatter was ‘high.’

One user said that when a risk-averse company like Toyota throws “chips in the pot,” massive upside awaits.

“It puts them back in the spotlight at a time when Archer has, for better or worse, dominated the eVTOL headlines,” another user said.

Joby stock has fallen 16.5% year to date (YTD).

In April, the company completed its first full transition flights with pilot onboard, a crucial step towards the FAA approval.

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