Key Highlights

• Joby Aviation (NYSE: JOBY) will purchase 980,000 shares of JTAMPC common stock for an aggregate cash price of $980,000, securing a 49% interest.

• Toyota (NYSE: TM) will acquire 1,020,000 shares for $1,020,000, giving it a 51% ownership stake in the new venture.

• The joint venture’s board will comprise five directors, with Toyota appointing three and Joby appointing two, and major actions will require consent when a party holds at least 50% of the common stock or 95% of its allocated shares.

Joint Venture Established

On June 29, 2026, Joby Aviation (NYSE: JOBY) and Toyota (NYSE: TM) signed a stockholders agreement to form Joby Toyota Aero Manufacturing Preparation Company (JTAMPC). The partnership aims to build the S4 series electric vertical‑takeoff and landing aircraft under a dedicated manufacturing entity. Toyota will purchase 1,020,000 shares for $1,020,000, establishing a 51% equity position.

Both parties will fund their initial capital contributions concurrently with the agreement.

Governance Structure

JTAMPC will be overseen by a five‑member board. Toyota will designate three directors, while Joby will name two.

Exclusive Manufacturing Rights

The parties committed to negotiate an exclusive manufacturing supply agreement before reaching the first funding milestone. Under the planned terms, Joby will grant JTAMPC exclusive rights to produce the S4 series, while licensing related intellectual property royalty‑free for manufacturing purposes. Toyota will provide joint‑development manufacturing know‑how, also on a royalty‑free basis, with limited royalty obligations that are not expected to be material.

Funding Milestones and Capital Calls

The agreement outlines mandatory capital contributions tied to specific funding milestones. Upon board determination that a milestone is met, each shareholder must supply its portion within 30 days, subject to extensions for regulatory approvals. Failure to meet a contribution may trigger a forced funding mechanism where the non‑defaulting party covers the shortfall and receives the defaulting party’s shares.

Termination and Protective Clauses

Either shareholder may terminate the arrangement if certain conditions are not satisfied, including failure to achieve FAA certification, inability to meet production targets, or material breach of the agreement. The document also contains customary provisions on transfer restrictions, rights of first refusal, indemnification, and confidentiality.

Market Implications

The joint venture positions Joby Aviation to scale its eVTOL production while leveraging Toyota’s manufacturing expertise. Investors will monitor the progress of funding milestones and the execution of the exclusive supply agreement, as they will dictate the timeline for ramping up S4 series output and potential revenue streams for both partners. The collaboration reflects a broader trend of aerospace firms partnering with automotive manufacturers to accelerate commercialization of urban air mobility solutions.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.