Joby Gets USD$180 Million From Tesla Shareholder, Reports Loss for Q1

Joby Aviation, the American eVTOL manufacturer, procured USD$180 million in funding from British investment management firm Baillie Gifford, which has previously invested in Tesla. 

The agreement was confirmed on May 3, 2023, and will see Joby issue USD$180 million worth of common stock to its long-term investor Baillie Gifford. 

The announcement was made in conjunction with Joby’s first quarter results for 2023, which saw the electric aircraft firm post a net loss of USD$113 million. The figure almost doubled from the USD$62 million recorded at the end of 2022.

Following the significant injection of capital from Baillie Gifford, which has a financial stake in Amazon as well, Joby plan to accelerate the early production of its aircraft and capitalize on near-term revenue opportunities. The funds accrued will also negate the financial impact of obtaining type certification. 

Joby founder and CEO JoeBen Bevirt said the goal is for the company’s eVTOLs to begin operating commercially by 2025. 

“Already in 2023 we’ve achieved significant milestones in production, testing and funding and I’m incredibly excited about our progress as we move towards our goal of launching commercial service in 2025,” he said. 

“The decision by Baillie Gifford to invest further in Joby is a testament to their long-term belief in the electrification of transportation and their track record speaks for itself. We couldn’t be more proud to have their support.”

Baillie Gifford acknowledged the innovative technologies Joby plans to bring to the market and vowed to continue pledging its support going forward. 

“It is important as long-term investors – even more so in a challenging environment – that we maintain our approach of backing transformational companies to build new growth industries,” a company spokesperson said. 

Joby maintained a healthy balance sheet for the first quarter of 2023 with USD$978 million in cash, cash equivalents, and investments in marketable securities. During the three months, the Santa Cruz-based firm spent USD$87.3 million on operating activities and the purchase of properties and equipment. 

The procurement of funds from Baillie Gifford comes just days after Joby signed a USD$55 million contract extension of its Agility Prime contract with the United States Air Force, bringing the total contract value to USD$131 million. The revenue-generating agreement is an important part of Joby’s commercialization strategy.

The eVTOL developer also signed a long-term deal with Toyota Motor Corporation revolving around the supply of key powertrain and actuation components.

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