Joby Aviation (NYSE:JOBY) stock gained 21% today after announcing a promising partnership with SK Telecom. On Sunday, SKT and Joby announced plans for a zero-emissions aerial ride-hailing services for cities across South Korea. And boy, have investors noticed.
So what do you need to know about the latest news moving JOBY stock?
Well, the California-based aviation company inked a deal set to revolutionize air travel in South Korea. This is the latest extension of the Korean Urban Air Mobility (K-UAM) Roadmap, first made public in 2020. Through collaboration with SKT, Joby has developed an all-electric, five-seat aircraft capable of landing and taking off vertically. With a range of 150 miles and a top speed of 200 miles per hour, the low-noise aircraft is designed for everyday use.
JoeBen Bevirt, founder and CEO of Joby, had some kind words for the partnership:
“We are thrilled to be partnering with the team at SKT who bring a wealth of relevant experience and technology to the table. With more than 42 million people living in urban areas, South Korea offers a remarkable opportunity for Joby to make air travel a part of daily life, helping people to save time while reducing their carbon footprint.”
The latest innovation from JOBY certainly has investors talking. What else do you need to know about the air taxi deal?
JOBY Stock Jumps on SKT Deal
JOBY closed up 21% higher as investors appear enamored by the prospect of this deal. This is a welcome change of pace for Joby, which has endured a fairly tumultuous past 12 months. From its high of $15 per share in February 2021, JOBY has steadily fallen to its current $4.65 price point.
Now, this deal suggests that Joby can turn things around. SKT is one of South Korea’s largest telecommunications companies and has long promoted the notion of urban air mobility. Importantly, it has already facilitated the development of the air taxi plan in South Korea.
Ryu Young-sang, CEO of SKT, was just as optimistic about the partnership with Joby:
“By joining forces with Joby, a global leader in this field, we expect to accelerate our journey towards the era of Urban Air Mobility and lead the way on introducing this exciting new technology. Collaborating with leading global companies is essential to securing leadership in future industries, which we are confident will be driven by the growth of UAM, autonomous driving, and robots.”
From a preliminary viewpoint, it certainly looks like a match made in heaven. Now JOBY stock just needs to prove it can take off — and stay in the air.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.