Prime Highlights:
- Beta Technologies signs a potential $1 billion, 10-year deal to supply motors to Eve Air Mobility, boosting its stock by over 8%.
- Eve CEO Johann Bordais calls the agreement a key milestone for advancing the company’s eVTOL aircraft technology.
Key Facts:
- Eve Holding shares rose 12% following the announcement, showing strong investor confidence.
- Beta Technologies, backed by Amazon, recently went public on the New York Stock Exchange but had seen shares drop more than 20% since its IPO.
Background:
Beta Technologies experienced a surge in its stock price, rising more than 8%, after air taxi company Eve Air Mobility revealed a long-term motor supply agreement worth up to $1 billion over the next decade.
The Vermont-based Beta will supply electric motors that are critical to powering Eve’s eVTOL (electric vertical takeoff and landing) aircraft.
Eve, founded by Brazilian airplane manufacturer Embraer and now part of Eve Holding, currently has a backlog of 2,800 vehicles. Eve CEO Johann Bordais called the deal an important step for the company, saying Beta’s motors will be key to developing their aircraft as they get closer to starting commercial flights.
The deal comes as the eVTOL industry grows more competitive, with companies like Archer Aviation and Joby Aviation expanding into global markets and working with governments. President Donald Trump’s recent pilot program for eVTOL technology is expected to accelerate industry growth.
Beta Technologies, which went public last month and counts Amazon among its investors, has seen its shares dip more than 20% since its IPO. The deal shows renewed investor confidence and strong demand for the growing air taxi market. Eve Holding shares also rose 12%, reflecting optimism about the industry’s future.