Toyota Strengthens Ties with Joby Aviation Inc. (JOBY) to Safeguard $1B Investment
Joby Aviation Inc. (NYSE:JOBY) is one of the best debt-free mid-cap stocks to buy according to hedge funds. On February 13, Bloomberg reported that Toyota has moved to safeguard its $1 billion investment pledge in Joby Aviation Inc (NYSE:JOBY).
The Japanese automaker is helping the air taxi maker troubleshoot production glitches at its facilities as it also explores a deeper manufacturing role. Toyota already has about 200 employees working to supply critical parts, provide training tips, and operate an assembly line. The automaker will also deploy lean manufacturing precepts known as the Toyota Production System.
The strategic partnership comes as Joby Aviation Inc assembles a prototype aircraft, stress-tests parts, and manufactures components as it awaits a $250 million tranche of Toyota’s promised $894 million funding.
Canaccord Genuity reiterated a Hold rating on Joby Aviation on February 3 but cut the price target to $15.50 from $17.The price target cut comes on the heels of the company completing a $1.29 billion equity and debt offering. The substantial capital raise will strengthen the company’s ability to accelerate certification and manufacturing efforts. However, it has raised concerns among existing shareholders about stock dilution.
Joby Aviation, Inc. (NYSE:JOBY) is a California-based aerospace company developing all-electric vertical take-off and landing (eVTOL) aircraft designed for commercial passenger air taxi services. Their piloted, five-seat aircraft aims to reduce urban congestion with zero-operating emissions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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