Air Taxi Company Seeks $200M From Stock Offering; $5.05 a Share

Flying taxi company Joby Aviation has announced a public offering of common stock expecting to raise $202 million for the electric aerial vehicle (EAV) maker.

Joby intends to use the financing to fund its “certification and manufacturing efforts, prepare for commercial operations and for general working capital and other general corporate purposes,” the company stated in a regulatory filing.

The public offering price is $5.05 per share.

The new funding follows a $500 million recent investment by Toyota, which brought its total investment in the EAV maker to $894 million.

Toyota has been investing in Joby since 2019, starting with Toyota Ventures, in addition to sharing knowledge of the Toyota systems for planning, manufacturing methods and tooling design. 

That initial investment grew to $394 million and Toyota engineers now work side-by-side with Joby staff in California

Joby and Toyota last year signed a long-term agreement for Toyota to supply key powertrain and actuation components for Joby’s EAVs. 

The new investment is scheduled in two parts, one later this year and the second in 2025.

The Toyota financing includes plans to establish a manufacturing alliance for the first phase of commercialization.

The new funding round comes one day after German eVTOL (electric vertical takeoff and landing) jet maker Lilium announced it is facing insolvency as two of its subsidiaries apply for self-administered insolvency.

Related:Toyota-Backed eVTOL Approved for Test Flights

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The move was triggered by Lilium being denied a $54 million loan guarantee it was seeking from the government of Bavaria.

Joby recently applied to become the first certified air taxi operator in the United Arab Emirates.

Joby already has partnership with the UAE through a memorandum of understanding with the Department of Municipalities and Transport Abu Dhabi, the Abu Dhabi Department of Economic Development and the Department of Culture and Tourism, setting Joby up to establish and scale flying taxi services in Abu Dhabi and beyond.

The Joby electric flying taxi is designed to carry a pilot and four passengers and travel up to 200 mph. The company plans to operate its EAVs in New York City and Los Angeles along with its partner Delta Air Lines.

Joby has raised more than $2 billion from Toyota, Delta Air Lines, SK Telecom and Uber and has logged more than 33,00 miles of flight with a full-scale prototype, according to the company.

While Joby is partnered with Delta, Archer Aviation, the other major air taxi company, has a partnership with United Airlines.

Related:Flying Taxi Startup Faces Insolvency