Joby Aviation Inc (NYSE:JOBY) saw its shares rise 3.8% to $8.96 in afternoon trading on Tuesday, following the release of a Securities and Exchange Commission filing that outlined the details of its manufacturing joint venture with Toyota Motor Corp (NYSE:TM). The filing, dated June 29, 2026, revealed that the joint venture, named Joby Toyota Aero Manufacturing Preparation Company, will launch with $2.0 million in initial capital. Joby is contributing $980,000 for a 49% stake, while Toyota is putting in $1.02 million for a 51% majority interest.
The market reaction, however, appeared to be driven less by the modest seed capital and more by the implications for Joby's production capabilities. The filing indicates that both parties still need to finalize future agreements, including an exclusive manufacturing supply pact and intellectual property terms. Joby is expected to grant the joint venture exclusive rights to manufacture its S4 series electric vertical takeoff and landing (eVTOL) aircraft, along with royalty-free manufacturing IP, while Toyota would license some of its own manufacturing IP. Either party can walk away if these future deals are not reached.
The filing also clarifies that Toyota's next $250 million investment in the joint venture will not be made until these additional agreements are in place. This puts significant weight on the upcoming negotiations, as investors are betting on a successful execution of the manufacturing and IP deals rather than the initial $2 million check. Joby's market capitalization gained approximately $311 million on the day, or about 156 times the joint venture's starting capital, based on the company's Q1 share count and the day's price swing.
Joby outperformed its eVTOL peers on Tuesday. Archer Aviation Inc (NYSE:ACHR) rose 1.3%, Eve Holding Inc (NYSE:EVEX) gained 3.7%, while Vertical Aerospace Ltd (NYSE:EVTL) dropped 2.3%. The broader market saw gains, with the SPDR S&P 500 ETF (NYSEARCA:SPY) up 0.7% and the Invesco QQQ Trust (NASDAQ:QQQ) rising 1.6%. The iShares Russell 2000 ETF (NYSEARCA:IWM) added 0.6%. The focus remained squarely on Joby, as the Toyota tie-up is being treated by investors as a de-risking of production challenges rather than a capital infusion.
Cash burn remains a concern for Joby. The company spent $144.4 million in operating cash during the first quarter of 2026, equivalent to about $1.6 million per day over 90 days. The joint venture's initial $2 million stake covers just over a day of that burn rate. However, Joby ended March with $2.47 billion in cash, cash equivalents, and short-term investments, providing a substantial runway.
Joby founder and CEO JoeBen Bevirt commented on the partnership, noting that Toyota has worked with Joby for nearly ten years and expressed their shared confidence in the opportunity ahead. Toyota Chairman Akio Toyoda described air mobility as a natural extension of Toyota's mobility efforts. The joint venture is seen as a key step toward scaling production of Joby's S4 eVTOL aircraft, which received FAA certification progress with the third of four major reviews completed.
In May, Joby stated it now has the clearest path ever to beginning passenger operations, following first-quarter demonstrations and progress on certification. The company also reported that its first FAA-conforming aircraft has flown. With the Toyota joint venture details now public, investors are closely watching for the execution of the follow-on manufacturing and IP agreements that could unlock the next phase of growth.
