Eve Holding's Shares Surge with $32.9 Million New Financing Deal

Shares of Eve Holding Inc., the air taxi company formed from the merger of Embraer SA's Eve Urban Air Mobility unit and Zanite Acquisition Corp., rose by 5% following news of additional financing.

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

The investment will also support an aircraft testing campaign, which is a critical step for Eve in launching its electric vertical takeoff and landing (eVTOL) vehicles. This second round of financing comes after the company previously raised 490 million reais in 2022 for research and development. Additionally, a recent investment of $50 million from Citibank was made to bolster Eve’s eVTOL development program.

In related industry news, last week, another company in the flying taxi sector, Vertical Aerospace Ltd., announced that it received funding of 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 first model.

Meanwhile, competitors Archer Aviation and Joby Aviation experienced a decline in stock prices on Monday following the rise observed on Friday.