Air taxi firm Eve Holding’s shares rise on new $32.9 million financing deal

Eve Holding Inc (NYSE:)., an air taxi company that emerged from a merger with Embraer SA (NYSE:)’s Eve Urban Air Mobility unit and Zanite Acquisition Corp., saw its shares increase by 5% following news of additional financing.

The company’s subsidiary, Eve Air Mobility, has secured 200 million reais ($32.9 million) from the Brazilian development bank BNDES. This funding is earmarked for the production of new prototypes and the eventual manufacturing of the commercial vehicle.

The investment will also support the aircraft testing campaign, which is a crucial step in bringing Eve’s electric vertical takeoff and landing (eVTOL) vehicles to market.

This second phase of financing comes after the company previously obtained 490 million reais in 2022, which was allocated for research and development. Additionally, a recent $50 million investment from Citibank was made to bolster Eve’s eVTOL development program.

In related industry news, last week, Vertical Aerospace Ltd., another company in the flying taxi sector, announced it had secured up to $50 million from Mudrick Capital Management. This funding is expected to provide Vertical Aerospace with the necessary resources to test and certify its inaugural model.

Meanwhile, competitors Archer Aviation and Joby Aviation (NYSE:) experienced a decline in their stock prices on Monday, following an uptick on Friday.

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