Joby Aviation, Inc. and Toyota Motor Corporation have formed a joint venture to manufacture Joby’s S4 Series electric vertical take-off and landing (eVTOL) aircraft. The new entity, Joby Toyota Aero Manufacturing Preparation Company (JTAMPC), was incorporated on June 29, 2026, to establish a dedicated manufacturing base leveraging Toyota's production expertise and Joby's aircraft technology. This alliance builds upon a multi-year collaboration and follows Toyota’s $500 million investment in Joby in late 2024 to fund aircraft certification and early-stage production.

Toyota acquired a 51% ownership interest in JTAMPC by purchasing 1,020,000 shares for $1.02 million. Joby acquired a 49% interest by purchasing 980,000 shares for $980,000. These initial capital contributions establish the ownership structure and provide foundational funding for the joint venture's operations. The venture aims to build commercial production capability, improve manufacturing productivity, and support Joby’s production expansion as it works toward aircraft certification.

JTAMPC will be governed by a board of five directors, with three designated by Toyota and two by Joby, subject to ownership thresholds. Significant corporate actions, such as amending the business plan, approving operating budgets, or issuing new equity, require prior approval from both parties. Specific actions, including incurring indebtedness and declaring dividends, require Toyota's approval.

The agreement mandates that Joby and Toyota negotiate an exclusive manufacturing supply agreement and related intellectual property arrangements before the first funding milestone is achieved. Under these proposed agreements, Joby will grant JTAMPC exclusive rights to manufacture the S4 Series and license related intellectual property on a royalty-free basis. Toyota will grant JTAMPC a royalty-free license for jointly developed manufacturing intellectual property and a royalty-bearing license for certain Toyota background manufacturing intellectual property.

Prior to achieving the first funding milestone, the parties intend to amend and restate the stockholders agreement to address funding contributions, consent rights, transfer restrictions, and exit rights. Stockholders are obligated to make mandatory capital contributions upon the achievement of specified funding milestones. The board will determine when a milestone is reached and issue notices specifying the aggregate amounts to be contributed. If the parties cannot agree on the terms of the future agreements, the stockholders agreement may be terminated by either party. The deal may also require Hart-Scott-Rodino and CFIUS filings.

Investors are increasingly bearish on Joby Aviation and Archer Aviation as the companies approach the commercialization phase of their electric vertical takeoff and landing (eVTOL) aircraft. Both stocks have tumbled to their lowest levels in months, with Archer Aviation falling 66% from its 2025 peak to $4.87 and Joby Aviation dropping to $8.83 from a peak of $20 last year. This decline has benefited short sellers, with data showing short interest of 123.3 million shares, or 18.6% of outstanding shares, for Archer Aviation. Joby Aviation faces a short interest of 15.4%, representing over 100.7 million shares shorted.

The negative sentiment stems from concerns regarding significant shareholder dilution and the distance to profitability. Both companies have spent billions of dollars in recent years, leading to a substantial increase in outstanding shares. Joby Aviation’s share count rose from 604 million in 2021 to 980 million today, while Archer Aviation’s increased from 157 million to 757 million over the same period. Financing agreements, such as Archer Aviation’s deal with Stellantis to fund labor costs in exchange for newly issued shares, suggest dilution will continue.

Financial Performance and Analyst Outlook

Investors are also wary of the future profitability model and margins for the eVTOL sector. Archer Aviation expects a second-quarter loss of $170 million, while Joby Aviation reported a first-quarter loss of $102 million. These losses have prompted analysts to reduce their outlooks. Canaccord Genuity slashed its price target for Joby Aviation to $11.5 from $15.5, with Morgan Stanley and Needham also cutting estimates. The consensus target for Joby stands at $11, slightly above the current trading price of $8.83. Similarly, Canaccord Genuity, Needham, and Goldman Sachs have reduced their estimates for Archer Aviation.

Key Metrics for Joby and Archer Aviation

Looking ahead, market attention will focus on upcoming regulatory approvals from the Federal Aviation Authority (FAA), potential capital raising events, and the progress toward commercialization. Both companies expect to launch their aircraft later this year, with ramping up anticipated in the following years.