Toyota Invests $1.5 Billion in Mobility Startups
▼ Summary
– Tesla achieved record quarterly deliveries of 497,099 vehicles, a 29% increase from the previous quarter and 7% higher than the same period last year.
– Ford, General Motors, Hyundai, and Rivian also reported record EV sales, with Rivian’s deliveries rising to 13,201 vehicles in the latest quarter.
– Automakers face challenges managing EV inventory and maintaining profit margins after the $7,500 federal tax credit expired, with Rivian already lowering its 2025 guidance.
– The Department of Energy canceled $7.56 billion in clean energy projects, disproportionately affecting blue states like California, which lost $2.2 billion in grants.
– Toyota committed $1.5 billion to startup investments through new funds, including Toyota Invention Partners and Woven Capital, focusing on companies from early to growth stages.
Toyota has announced a major $1.5 billion investment initiative aimed squarely at mobility startups, signaling a powerful commitment to shaping the future of transportation. This substantial capital infusion will support emerging companies across every stage of development, from initial concept to full maturity. The Japanese automaker is establishing a new strategic investment subsidiary, Toyota Invention Partners Co., funded with approximately $670 million, while its existing growth-stage venture arm, Woven Capital, is launching a second fund valued at $800 million. This dual approach ensures Toyota can nurture innovation from the earliest ideas through to scalable business ventures.
The broader automotive industry is currently navigating a pivotal moment, especially concerning electric vehicle sales. Recent expiration of a key $7,500 federal tax credit created uncertainty, with many predicting a sharp decline in EV purchases. However, the final quarter before the deadline saw an unexpected surge. Tesla reported its best-ever quarterly deliveries at 497,099 vehicles, representing a massive 29% increase from the previous quarter. Other major players like Ford, General Motors, and Hyundai also posted record EV sales for the period. Rivian similarly experienced a significant jump, delivering 13,201 vehicles compared to 10,661 in the second quarter.
Despite this strong finish, automakers now face the challenge of sustaining momentum without the tax incentive. Rivian has already revised its 2025 projections downward, and others may follow as they strategize how to manage existing inventory ahead of 2026 model releases without sacrificing already thin profit margins.
In parallel government-related news, the Department of Energy made headlines by canceling 321 clean energy projects collectively worth $7.56 billion. California was the hardest hit, losing $2.2 billion in grants, including a substantial $630 million grid-modernization initiative that could have served as a national model. The majority of terminated projects were located in states that voted for Kamala Harris in the last presidential election, raising questions about the government’s reliability as a partner for businesses, particularly smaller startups.
Beyond Toyota’s landmark commitment, several other notable transactions captured attention in the mobility sector. Swedish startup Einride, known for its distinctive electric and autonomous transport pods, secured $100 million in new funding. While substantial, this amount falls considerably short of the $500 million in equity and debt the company raised previously. The investment round included participation from quantum computing firm IonQ and existing shareholder EQT Ventures.
Electroflow, developing more affordable LFP battery technology, completed a $10 million seed round led by Union Square Ventures and Voyager. Flai, an artificial intelligence platform designed for car dealerships, raised $4.5 million in seed funding spearheaded by First Round Capital.
An unusual trend emerging under the current administration involves the Department of Energy taking equity positions in private companies. The DOE recently acquired 5% stakes in Canadian firm Lithium Americas and its Nevada mining joint venture with General Motors as part of renegotiating a $2.26 billion federal loan, following similar moves with Intel and MP Materials.
Internationally, the U.K. government will guarantee a £1.5 billion commercial bank loan for Jaguar Land Rover after a cyberattack disrupted production and threatened supply chain partners with bankruptcy. Meanwhile, early-stage deep tech fund Wave Function Ventures closed its inaugural fund at $15.1 million.
Several other developments are shaping the transportation landscape. Two Amazon Prime Air delivery drones collided with construction equipment near the company’s Tolleson, Arizona facility, prompting a federal investigation and temporary service suspension. DoorDash continues developing its autonomous delivery robot “Dot,” while troubled EV startup Faraday Future made headlines when one of its electric SUVs caught fire at its Los Angeles headquarters, causing an explosion that damaged the building.
Waymo achieved a regulatory victory in New York City with an extended testing permit, and Zoox announced plans to begin mapping Washington, D.C. streets in preparation for self-driving vehicle tests. WestJet disclosed a data breach compromising personal information for 1.2 million passengers, and the Trump administration’s policies in Chicago are reportedly creating challenges for gig economy platforms.
The upcoming TechCrunch Disrupt 2025 event will feature prominent transportation leaders including Waymo’s co-CEO Tekedra Mawakana, Waabi founder Raquel Urtasun, Wayve CEO Alex Kendall, and Slate CEO Chris Barman. The event will also showcase promising startups from the Battlefield 200, including Hance, which is pioneering low-energy, on-device processing technology that has already attracted interest from Intel.
(Source: TechCrunch)
