©Reuters. Why is Joby Aviation (JOBY) stock up today?
Shares of Joby Aviation (NYSE:) jumped more than 4.2% in premarket trading on Monday. The stock was down about 4% at Friday’s close.
Today’s rise comes after the maker of electric vertical take-off and landing (EVTOL) aircraft announced on Sunday that it had entered into an agreement with the Dubai Roads and Transport Authority, granting it exclusive rights to operate air taxi services in the city-state of the United Arab Emirates for a term of six years.
The company plans to launch its air taxi services by early 2026, aiming for an earlier start in 2025. Joby said the Roads and Transport Authority will offer “a variety of support”, including “mechanisms financial” to facilitate this undertaking.
“Today’s historic agreement provides all three ingredients needed to successfully launch an air taxi service: a definitive route for operations, a well-located infrastructure supported by dedicated partners, and an aircraft with the capability and autonomy to deliver meaningful travel,” said Joby founder and CEO JoeBen Bevirt.
At the same time, the company has also secured a partnership with Dubai’s Skyports, which will build and operate four ports in Dubai to accommodate Joby’s electric planes.