Joby Aviation to get investment from Tesla shareholder Baillie Gifford
03/05/2023 21:23
May 3 (Reuters) - British investment management firm
Baillie Gifford will invest $180 million in electric aircraft
maker Joby Aviation JOBY.N , they said on Wednesday.
This comes days after Joby clinched a $55 million contract
extension to deliver up to nine air taxis to the U.S. Air Force,
marking the company's first revenue-generating operations.
Unlike other electric vertical takeoff and landing (eVTOL)
manufacturers, which plan to sell aircraft to customers such as
airlines and logistics companies, Joby's business model is
similar to a rideshare app.
"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 Baillie Gifford spokesperson said in a statement.
The British investment firm are also investors in Elon
Musk-led electric vehicle maker Tesla Inc TSLA.O and online
retailer Amazon.com Inc AMZN.O .
The investment is expected to close on May 5, Baillie
Gifford and Joby said on Wednesday.
Joby also reported cash and short-term marketable securities
of $978 million at the end of the first quarter, before the
investment.
Once certified, the EVTOL maker will compete in a crowded
market with dozens of other developers such as Archer Aviation
and Vertical Aerospace Ltd vying to revamp urban transportation.
(Reporting by Akash Sriram and Aishwarya Nair in Bengaluru;
Editing by Maju Samuel)
((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter;
+91-74116-87774;))