Shares of Joby Aviation, Inc. (JOBY) surged 13.98% in pre-market trading on Monday, following President Donald Trump's signing of executive orders aimed at bolstering U.S. drone defenses and boosting the electric air taxi industry. The move has sparked a rally across the aviation technology sector, with Joby leading the gains among electric vertical takeoff and landing (eVTOL) companies.

The executive orders, signed on Friday, seek to advance the testing of eVTOL aircraft and enable the routine use of drones beyond the visual sight of operators. This development is particularly beneficial for companies like Joby Aviation, which specializes in developing electric air taxis. The orders are expected to create a more favorable regulatory environment for eVTOL firms, potentially accelerating their path to commercialization.

Investors are showing optimism about the future of electric air mobility and advanced drone technologies in the United States. The executive order establishes a pilot program to support early deployment of eVTOL aircraft, with at least five projects to be selected this year. This initiative is seen as a significant step towards making urban air mobility a reality, potentially compressing regulatory timelines and bringing commercial operations forward by years. Joby Aviation, with its strong execution and partnerships with major airlines, is well-positioned to benefit from this government support.