Why Joby Aviation Stock Is Climbing Today

June 3 - Joby Aviation JOBY shares surged more than 10% Tuesday morning after the company signed a memorandum of understanding with Abdul Latif Jameel to explore a potential distribution agreement in Saudi Arabia for its electric aircraft.

The deal is aligned with broader efforts between the U.S. and Saudi Arabia to strengthen ties in advanced transportation and innovation. The companies said the partnership could lead to the delivery of up to 200 aircraft and services over the coming years, valued at roughly $1 billion.

Joby said direct sales to partners such as Abdul Latif Jameel form a key part of its go-to-market strategy. Its all-electric, piloted aircraft seats four passengers and is designed for urban air mobility at speeds up to 200 miles per hour, while producing less noise than helicopters and zero operational emissions.

Looking ahead, Joby plans to begin passenger services in Dubai by 2026. The companies also see potential for expanded revenue opportunities across the wider Middle East region.