Why is Joby Aviation stock up today?

Shares of Joby Aviation (NYSE:) jumped more than 4.2% in premarket trading Monday. The stock has dropped around 4% through Friday’s close.

Today’s uptick comes after the electric vertical takeoff and landing (EVTOL) aircraft maker announced on Sunday that it has entered into an agreement with the Road and Transport Authority of Dubai, granting it the exclusive rights to manage air taxi services in the UAE city-state for a duration of six years.

The firm anticipates the initiation of its air taxi services by the beginning of 2026, aiming for an early start in 2025. Joby conveyed that the Road and Transport Authority will offer “a variety of support,” including “financial mechanisms” to facilitate this venture.

“Today’s landmark agreement delivers on all three ingredients required to successfully launch an air taxi service—a definitive path to operations, well-placed infrastructure supported by dedicated partners, and an aircraft with the capacity and range to deliver meaningful journeys,” said Joby’s founder and CEO, JoeBen Bevirt.

At the same time, the company has also secured a partnership with Dubai’s Skyports, which will construct and operate four ports in Dubai to accommodate Joby’s electric aircraft.