Why Beta Technologies Stock Rocketed 8% Higher on Tuesday

Next-generation aerospace company Beta Technologies (NYSE: BETA) looked more like a stock market alpha on Tuesday. Investors eagerly plowed into the highly specialized industrial company's shares, driving them to a more than 8% gain that trading session, on the back of a new supply deal it announced that morning.

Motor of growth

Beta wrote in a press release that it has been selected to provide pusher motors for electric vertical take-off and landing (eVTOL) air taxis being developed by Eve Air Mobility.

Image source: Getty Images.

This should be quite a large project, as Eve currently has a backlog of 2,800 eVTOLs. Beta said that the deal between the two companies "represents a potential 10-year opportunity for Beta of up to $1 billion." Beta's revenue for all of 2024 was barely over $15 million, so this work alone could be transformational for the company.

The new collaboration follows an initial evaluation phase, during which Eve put those motors to the test in a prototype. That craft is expected to make its first flight later this year, or in early 2026.

Sudden success

In its press release on the deal, Beta quoted founder and CEO Kyle Clark as saying that "Our pusher motors have already proven high performance and reliability in thousands of demanding real-world operations across the globe, and our manufacturing capability will allow us to deliver these systems at scale to support Eve's aircraft."

And, it has to be said, the work could potentially reap millions, if not billions, of dollars. Although this is excellent news, investors should keep a sharp eye on Beta to see how it's coping with the significant boom in business. It's almost never easy to scale up quickly.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.