Automaker Toyota Motor Corp TM made its presence at the 2025 CES conference felt announcing new plans for the space sector and an update on its city for inventors.
From Cars to Rockets: Toyota might be following in the footsteps of Tesla Inc TSLA CEO Elon Musk by also getting into the space sector, which was one of the hottest areas for investors in 2024.
Toyota chairman Akio Toyoda said the company is looking to the space sector as one of its examples of "invention by multiplication," while speaking at CES.
"When it comes to what's possible when you work together, the sky's the limit. And speaking of the sky, we're exploring rockets, too," Toyoda said, as reported by TechCrunch.
While Toyota's interest in space and rockets could put the company head-to-head with Musk and SpaceX, Toyoda may have amplified the future battle with a comment.
"The future of mobility shouldn't be limited to just Earth, or just one car company."
Toyota's presentation included a rendering of a rocket designed by Japanese spaceflight company Interstellar Technologies.
The Toyota chairman said the company is working with Interstellar Technologies on telecommunications to support its prototype Woven City in Japan.
Toyota confirmed to TechCrunch that Woven by Toyota invested around $44.3 million in Interstellar Technologies. Woven by Toyota is the company's mobility subsidiary working on items such as automated driving, vehicle operating systems and Woven City.
While Toyota didn't provide many details on its space ambitions, a tease of a rocket, announcing an investment in a spaceflight company and more could signal the company's desire to grow in this segment for the future.
Toyota is a competitor with Tesla as one of the largest automakers by production annually. Toyota has focused more on hybrid vehicles than battery electric vehicles in recent years.
While Toyota is a competitor to Tesla, the launch of a space division or heavier investment in the sector would also put the company in direct competition with SpaceX. While Tesla and SpaceX are separate companies, they are both led by Musk and this could create quite the battle against the world's richest man.
Read Also: Toyota 2024 US Sales Surge 3.7%, Hits Milestone With Over A Million Electrified Vehicles Sold
Woven City Takes Shape: Toyota shared its plan for Woven City back at CES 2020 and now the launch is set for this year.
Located in Japan, Woven City is called a city for inventors and will serve as a test course for mobility for Toyota and other partner companies.
"Woven City is a test course for mobility where ‘inventors' who share a commitment for working ‘for someone other than themselves' can develop, test and validate innovative products and services," the company said.
The list of partners includes some Toyota Group companies, external companies, startups and individual entrepreneurs. Partners include Daikin Industries, UCC Japan and Nissin Food Products.
Construction for Phase 1 buildings was completed in October 2024 with the official launch coming later this year. Site preparation work is also underway for Phase 2.
Around 100 residents, primarily Toyota Group staff and their families, will be part of Phase 1's initial launch with a total of 360 residents expected in the entire Phase 1 wave. Phase 2 and other phases will take Woven City to a population of around 2,000 inventors.
In the future, co-creation activities and visitors will also be welcomed to Woven City to visit and participate.
Woven City is part of Woven by Toyota's plan to expand mobility "from land, sea, and air to space."
The company has invested billions of dollars into the concept with the hope that combining inventors and providing the tools could help unlock autonomous vehicle technology on a built-in test course and also bring in inventions in the areas of AI, energy, space and more, as reported by InsideEVs.
Woven City members will need residence status in Japan to live there for one to two years, the company said. Applications and scholarships will open later this year for potential residency in Woven City.
While new technologies that generate revenue for Toyota could come out of Woven City, Toyota shareholders might not like the chairman's overall vision.
"At Woven City, we are trying to have a project that will never be completed," Toyoda told media at CES. "That's because we are trying to create the future. The purpose of this project is not to make money."
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