SKM - Joby Aviation rallies 10% to new 52-week high as buzz over commercial flight potential builds

2023-06-29 07:06:27 ET

Joby Aviation ( NYSE: JOBY ) announced that SK Telecom ( NYSE: SKM ) is  making an equity investment of $100M in the company as part of an expanded partnership.

Joby Aviation ( JOBY ) and SKT first signed a strategic collaboration agreement in February 2022, which was expanded to include TMAP, South Korea’s largest mobility platform, in May 2022. The investment is expected to lead to the development of further partnerships across the mobility ecosystem in Korea, led by SKT.

The new agreement with SK Telecom is expected to help Joby Aviation ( JOBY ) prepare for Korea's K-UAM Grand Challenge. The challenge is a phased demonstration program led by the Korean Ministry of Land, Infrastructure and Transport, which is designed to foster the adoption of aerial ridesharing in Korea.

Joby Aviation ( JOBY ) CEO JoeBen Bevirt said the partnership with SKT places Joby in the best possible position to capitalize on the opportunity presented by the Korean market. Bevirt highlighted the strong drive from the South Korean government to realize aerial ridesharing.

Shares of Joby Aviation ( JOBY ) shot up 9.93% in premarket trading to  $9.85 to mark a new 52-week high. The stock soared 40.22% on Wednesday after the Federal Aviation Administration issued the company a certificate for its first production prototype, which will allow it to begin flight testing. Job Aviation ( JOBY ) said it is targeting 2025 for commercial flights.

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