Toyota Sets Sights on Space: Bold Moves to Rival Elon Musk’s SpaceX
Toyota isn’t just making waves on Earth—it’s aiming for the stars. Fresh off a stellar 2024 NASCAR Cup Series season, where Tyler Reddick piloted the No. 45 Toyota to three victories and a Championship 4 appearance, and Joe Gibbs Racing drivers like Denny Hamlin and Christopher Bell delivered multiple wins, the Japanese automotive giant is now setting its sights on space exploration.
In collaboration with the Japan Aerospace Exploration Agency (JAXA), Toyota has been working on a lunar rover since 2019 as part of NASA’s Artemis program, which aims to return astronauts to the moon. Now, Toyota is stepping up its game, directly challenging space exploration giants like Elon Musk’s SpaceX.
Toyota Declares War on SpaceX
The move aligns with Japan’s broader efforts to bolster its private space industry. The country conducted three space launches in 2023 and aims for 30 annual launches by the early 2030s. Toyota, through its research arm Woven, is investing ¥7 billion (approximately $44.4 million) in Interstellar Technologies (IST), a Japanese startup specializing in lightweight rocket production. Toyota will also secure a seat on IST’s executive board to guide its ambitious plans.
IST aims to “leverage automotive industry expertise, including Toyota’s production methods, to transition rocket manufacturing into a high-quality, cost-effective, and scalable process.”
Toyota Chairman Akio Toyoda made the company’s intentions clear during his speech at CES in Las Vegas on January 6, stating, “The future of mobility shouldn’t be limited to just cars. Or just one car company, for that matter. Speaking of the sky, we’re exploring rockets, too.”
This marks a significant milestone for IST, which became the first Japanese company to send a commercially developed rocket into space in 2019.
Racing to the Stars Amid Challenges
While Toyota’s foray into space is groundbreaking, it comes at a time when the company faces challenges on multiple fronts. Despite its dominance in NASCAR, including three Cup Series titles, four Xfinity Series titles, and nine Truck Series titles, Toyota’s off-track troubles have cast a shadow over its achievements.
- Financial Woes: In 2024, Toyota’s market value dropped by $30 billion (11%) in just two trading sessions, contributing to a broader decline in Japan’s Topix index.
- Testing Scandal: Certification irregularities dating back to 2014 emerged, blocking some production lines and impacting sales volumes, which shrank by over 25%.
- EV Struggles: Despite success with hybrids like the Prius, purely battery-powered cars accounted for less than 2% of Toyota’s total sales, leaving the company lagging in the electric vehicle revolution.
Still, Toyota remains undeterred. Hajime Kumabe, CEO of Woven, emphasized, “This is another way to expand mobility in land, sea, and air.”
A Bold Future Ahead
Toyota’s investments in IST signal its determination to conquer both terrestrial and extraterrestrial challenges. While the company continues to innovate in motorsports and mobility, its entry into space exploration is a bold step toward reshaping its future—and possibly challenging Elon Musk’s SpaceX for dominance in the rapidly growing commercial space industry.
Will Toyota’s efforts in space mirror its NASCAR success? Only time will tell, but one thing is clear: the battle for the skies is just getting started.
