Newly public electric aircraft maker Beta Technologies $BETA ( ▲ 1.76% ) is moving higher in premarket trading after announcing it will supply electric motors to a rival, Eve Air Mobility $EVEX ( ▼ 0.41% ). The agreement, backed by Embraer, is potentially worth $1 billion over ten years and marks a major commercial milestone for Beta, which secured a $300 million investment from GE Aerospace $GE ( ▲ 2.05% ) in September.
Analysts have highlighted Beta’s potential as a supplier since its IPO. Morgan Stanley went as far as comparing the company to Tesla, citing its vertical integration strategy and manufacturing approach. Goldman Sachs also weighed in this week, giving Beta a buy rating while assigning a sell rating to Joby Aviation $JOBY ( ▲ 3.47% ) and a neutral rating to Archer Aviation $ACHR ( ▲ 4.92% ) .
The deal with Eve reinforces the idea that early winners in electric aviation may not only be the companies building the aircraft, but also the suppliers powering the ecosystem.