Beta Technologies stock jumped over 9% Monday after Eve Air Mobility announced a motor supply deal worth up to $1 billion over the next decade. The partnership positions Beta as a key supplier in the rapidly expanding electric vertical takeoff and landing (eVTOL) market, while Eve gains access to crucial propulsion technology for its 2,800-vehicle backlog.
Beta Technologies just landed its biggest deal yet, and the market is taking notice. The Vermont-based electric aircraft company watched its shares soar more than 9% after Eve Air Mobility announced a motor supply agreement that could reach $1 billion over the next decade.
The deal isn't just big - it's strategic. Eve Holding, the publicly traded parent of Eve Air Mobility, saw its own stock jump 14% as investors recognized what this partnership means for the company's ambitious production timeline. With 2,800 aircraft already in its backlog, Eve needed a reliable motor supplier that could scale with its growth plans.
"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," Eve CEO Johann Bordais said in the company's announcement. The motors will specifically power Eve's eVTOL aircraft during cruise flight, a critical phase that determines range and efficiency.
This partnership comes at a pivotal moment for the air taxi industry. While companies like Joby Aviation and Archer Aviation have grabbed headlines with their flight tests and regulatory milestones, the real action is happening in the supply chain. Beta's win with Eve signals that established players are consolidating around proven technology providers rather than developing everything in-house.
Eve's lineage adds weight to this decision. Originally spun out of Brazilian aerospace giant Embraer, Eve carries decades of aircraft manufacturing expertise. When a company with that pedigree chooses an external motor supplier, it validates both the technology and the business model.
The timing couldn't be better for Beta, which has been positioning itself as more than just an aircraft manufacturer. The company's strategy of becoming a key supplier to other eVTOL makers is paying off, creating multiple revenue streams beyond its own aircraft sales. This approach mirrors how companies like Safran and dominate traditional aviation through engine and component supply contracts.
