(Bloomberg) -- Joby Aviation Inc. surged after receiving US regulatory approval to expand testing of its air taxi, marking another step toward building a business around electric-powered flying vehicles.
The company, based in Santa Cruz, California, said in a statement that the go-ahead from the Federal Aviation Administration will let it test flying taxis coming off its production line; it previously could only try out a prototype made by hand. Joby will produce the first aircraft from its manufacturing facility on Wednesday.
Additionally, Tetsuo Ogawa president of Toyota Motor Corp.’s North America division, will join Joby’s board on July 1. Toyota is Joby’s largest outside investor with about a 12% stake, according to data calculated by Bloomberg, and has helped the firm build its production capabilities. The companies have a long-term agreement for Toyota to provide powertrain and some components.
Joby’s shares advanced 22% at 9:50 a.m. in New York. The stock had gained 91% this year through Tuesday’s close.
Read More: How Do the Leading Flying Taxi Companies Compare?
Joby is among several companies attempting to create a new category of small electric-powered aircraft designed to zip passengers across cities to avoid car traffic. The vehicle is designed to take off vertically like a helicopter and then fly similarly to a small plane. The FAA said last month that these vehicles will be initially regulated like helicopters.
The company, which also counts Delta Air Lines Inc. and Intel Corp. among its largest shareholders, said the early production units will become the first electric vertical take-off and landing craft — or eVTOL — to be delivered to a paying customer when the US Air Force receives them next year. Those vehicles are part of a $131 million contract Joby secured earlier this year.
(Updates stock performance in fourth paragraph.)
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