Beta stock jumps 9% on $1 billion motor deal with air taxi maker Eve Air Mobility

Beta Technologies shares surged more than 9% after air taxi maker Eve Air Mobility announced an up to $1 billion deal to buy motors from the Vermont-based company.

Eve, which was started by Brazilian airplane maker Embraer and is now under Eve Holding, said the manufacturing deal could equal as much as $1 billion over 10 years. The Florida-based company said it has a backlog of 2,800 vehicles.

Shares of Eve Holding gained 14%.

Eve CEO Johann Bordais called the deal a “pivotal milestone” in the advancement of the company’s electric vertical takeoff and landing, or eVTOL, technology.

“Their electric motor technology will play a critical role in powering our aircraft during cruise, supporting the maturity of our propulsion architecture as we progress toward entry into service,” he said in a release.

Beta, which counts Amazon as a backer, went public on the New York Stock Exchange last month.

Air taxi makers, including Beta, are racing to gain Federal Aviation Administration approval and begin transporting commercial customers.

The small, but competitive industry is also leaning on government parentships and President Donald Trump‘s recently announced pilot program for the technology.

Rivals Archer Aviation and Joby Aviation have bet big on the Middle East as a proving ground for the technology and have worked closely with major defense players. Last month, Joby sued Archer over trade secrets.

Beta shares have fallen more than 20% from their closing price on IPO day.

WATCH: Beta Technologies strikes $1B electric motor manufacturing deal with Eve Air Mobility