Flying taxis are on the horizon as aviation soars into a new frontier

SAN FRANCISCO (AP) — When he was still a boy making long, tedious trips between his school and his woodsy home in the mountains during the 1980s, JoeBen Bevirt began fantasizing about flying cars that could whisk him to his destination in a matter of minutes.

As CEO of Joby Aviation, Bevirt is getting closer to turning his boyhood flights of fancy into a dream come true as he and latter-day versions of the Wright Brothers launch a new class of electric-powered aircraft vying to become taxis in the sky.

The aircraft — known as "electric vertical take-off and landing vehicle, or eVTOL — lift off the ground like a helicopter before flying at speeds up to 200 miles per hour (322 kilometers per hour) with a range of about 100 miles (161 kilometers). And these craft do it without filling the air with excessive noise caused by fuel-powered helicopters and small airplanes.

“We are just a few steps from the finish line. We want to turn what are now one- and two-hour trips into five-minute trips,” Bevirt, 51, told The Associated Press before a Joby air taxi took off on a test flight in Marina, California — located about 40 miles south from where he grew up in the mountains.

Archer Aviation, a Silicon Valley a Silicon Valley company backed by automaker Stellantis and United Airlines, has been testing its own eTVOLs over farmland in Salinas, California, where a prototype called “Midnight” could be seen gliding above a tractor plowing fields last November.

The tests are part of the journey that Joby Aviation and other ambitious companies that collectively have raised billions of dollars are taking to turn flying cars into more than just pie-in-the-sky concepts popularized in 1960s-era cartoon series, “The Jetsons,” and the 1982 science fiction film, “Blade Runner.”

Archer Aviation and nearby Wisk Aero, with ties to aerospace giant Boeing Co. and Google co-founder Larry Page, are also at the forefront in the race to bring air taxis to market in the United States. Joby has already formed a partnership to connect its air taxis with Delta Air Lines passengers while Archer Aviation has lined up a deal to sell up to 200 of its aircraft to United Airlines.

Flying taxis have made enough regulatory inroads with the U.S. Federal Aviation Administration to result in the recent creation of a new aircraft category called “powered lift,” a step that the agency hadn't taken since helicopters were introduced for civilian use in the 1940s.

But there are more regulatory hurdles to be cleared before air taxis will be allowed to carry passengers in the U.S., making Dubai the most likely place where eVTOLs will take commercial flight — perhaps by the end of this year.

“It’s a tricky business to develop a whole new class of vehicles,” said Adam Lim, director of Alton Aviation Consultancy, a firm tracking the industry's evolution. “It is going to be like a crawl, walk, run situation. Right now, I think we are still crawling. We are not going to have the Jetsons-type reality where everyone will be flying around everywhere in the next two to three years.”

China is also vying to make flying cars a reality, a quest that has piqued President-elect Donald Trump's interest in making the vehicles a priority for his incoming administration during the next four years.

If the ambitions of eVTOL pioneers are realized in the U.S., people will be able to hop in an air taxi to get to and from airports serving New York and Los Angeles within the next few years.

Because its electric taxis can fly unimpeded at high speeds, Joby envisions transporting up to four Delta Air Lines passengers at a time from New York area airports to Manhattan in about 10 minutes or less. To start, air taxi prices almost certainly will be significantly more that the cost of taking a cab or Uber ride from JFK airport to Manhattan, but the difference could narrow over time because eVTOLs should be able to transport a higher volume of passengers than ground vehicles stuck in traffic going each way.

“You will see highways in the sky,” Archer Aviation CEO Adam Goldstein predicted during an interview at the company's San Jose, California, headquarters. “There will be hundreds, maybe thousands of these aircraft flying in these individual cities and it will truly change the way cities are being built.”

Investors are betting Goldstein is right, helping Archer raise an additional $430 million late last year from a group that included Stellantis and United Airlines. The infusion came shortly after a Japanese automaker poured another $500 million into Joby to bring its total investment in that company to nearly $900 million.

Those investments were part of the $13 billion that eTVOL companies have raised during the past five years, according to Alton Aviation.

Both Joby Aviation and Archer Aviation went public in 2021 through reverse mergers, opening up another fundraising avenue and making it easier to recruit engineers with the allure of stock options. Both companies have been able to attract workers away from electric automaker Tesla and rocket maker SpaceX and, in Archer's instance, raiding the ranks of Wisk Aero.

The Wisk defections triggered a lawsuit accusing Archer of intellectual property theft in a dispute that was resolved with a 2023 settlement that included an agreement for the two sides to collaborate on some facets of eTVOL technology.

Before going public, Joby also acquired eTVOL technology developed by ride-hailing service Uber in an $83 million deal that also brought those two companies together as partners.

But none of the deals or technological advances have stopped the losses from piling up at the companies building flying cars. Joby, whose roots date back to 2009 when Bevirt founded the company, has sustained $1.6 billion in losses since its inception while Archer has amassed nearly $1.5 billion in losses since its founding in 2018.

While they moved to commercial air taxi services, both Joby and Archer are trying to bring in revenue by negotiating contracts to use their eTVOLs in the U.S. military for deliveries and other other short-range missions. Archer has forged a partnership with Anduril Industries, a military defense technology specialist founded by Oculus headset inventor Palmer Luckey, to help it win deals.

The uncertain prospects have left both companies with relatively low market values by tech industry standards, with Joby's hovering around $7 billion and Archer's $6 billion.

But Bevirt sees blue skies ahead. “eVTOLs are going to transform the way we move,” he said. “It’s a dramatically better way to get around. Seeing the world from the air is better than being stuck in the traffic on the interstate.”

A phone displays a Joby Aviation mobile app that consumers could use to take a flight in an "electric vertical takeoff and landing" eVTOL aircraft. San Carlos, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

Archer Aviation CEO Adam Goldstein speaks at the company's headquarters in San Jose, Calif. on Friday, Dec. 13, 2024. (AP Photo/Terry Chea)

Joby Aviation employees assemble parts for an "electric vertical takeoff and landing" eVTOL aircraft in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

An "electric vertical take-off and landing" aircraft built by Joby Aviation flies over an airfield in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

A Joby Aviation employees works on the assembly of an "electric vertical takeoff and landing" eVTOL aircraft in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

JoeBen Bevirt, CEO of Joby Aviation, stands next to an "electric vertical take-off and landing" aircraft, also known as an eVTOL, in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

An "electric vertical take-off and landing" aircraft built by Joby Aviation lands at an airfield in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

JoeBen Bevirt, CEO of Joby Aviation, stands next to an "electric vertical take-off and landing" aircraft, also known as an eVTOL, in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

An "electric vertical take-off and landing" aircraft built by Joby Aviation is parked at an airfield in Marina, Calif. on Monday, Oct. 7, 2024. (AP Photo/Terry Chea)

Global markets plunged Monday following last week's two-day meltdown on Wall Street, and President Donald Trump said he won't back down on his sweeping new tariffs, which have roiled global trade.

Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.

Trump’s tariff blitz fulfilled a key campaign promise as he acted without Congress to redraw the rules of the international trading system. It was a move decades in the making for Trump, who has long denounced foreign trade deals as unfair to the U.S.

The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight.

Here's the latest:

China on Monday accused the U.S. of unilateralism, protectionism and economic bullying with tariffs.

“Putting the U.S. first over international rules is a typical act of unilateralism, protectionism and economic bullying,” Foreign Affairs spokesperson Lin Jian told reporters.

Lin said the new tariffs harmed the stability of global production and supply chains and seriously impacted the world’s economic recovery.

European shares dropped in early trading, with Germany’s DAX falling 6.5% to 19,311.29. In Paris, the CAC 40 shed 5.7% to 6,861.27, while Britain’s FTSE 100 lost 4.5% to 7,694.00.

South Korea’s top trade negotiator will visit Washington this week to express Seoul’s concerns over the Trump administration’s increased tariffs and discuss ways to mitigate their negative impact on South Korean businesses.

South Korea’s Ministry of Trade, Industry and Energy said Monday that its minister of trade, Inkyo Cheong, plans to meet with various U.S. officials, including U.S. Trade Representative Jamieson Greer.

The ministry says Cheong aims to gather detailed information on the Trump administration’s trade policies and engage in discussions to reduce the 25% tariffs placed on South Korean products.

Chinese government officials met business representatives from Tesla, GE Healthcare and other U.S. companies on Sunday. It called on them to issue “reasonable” statements and take “concrete actions” on addressing the issue of tariffs.

“The United States in recent days has used all sorts of excuses to announce indiscriminate tariffs on all trading partners, including China, severely harming the rules-based multilateral trade system,” said Ling Ji, a vice minister of commerce, at the meeting with 20 U.S. companies.

“China’s countermeasures are not only a way to protect the rights and interests of companies, including American ones, but are also to urge the U.S. to return to the right path of the multilateral trading system," Ling added.

Ling also promised that China would remain open to foreign investment, according to a readout of the meeting from the Ministry of Commerce.

Malaysia’s Trade Minister Zafrul Abdul Aziz said his country wants to forge a united response from Southeast Asia to the sweeping U.S. tariffs.

Malaysia, which is the chair of the Association of Southeast Asian Nations this year, will lead the regional bloc’s special Economic Ministers’ Meeting on April 10 in Kuala Lumpur to discuss the broader implication of the tariff measures on regional trade and investment, Zafrul told a news conference on Monday.

“We are looking at the investment flow, macroeconomic stability and ASEAN's coordinated response to this tariff issue,” Zafrul said.

ASEAN leaders will also meet to discuss member states’ strategies and to mitigate potential disruptions to regional supply chain networks.

Pakistan plans to send a government delegation to Washington this month to discuss how to avoid the 29% tariffs imposed by the U.S. on imports from Pakistan, officials said Monday.

The development came two days after Pakistan’s prime minister asked its finance minister to send him recommendations for resolving the issue. The U.S. imports around $5 billion worth of textiles and other products from Pakistan, which heavily relies on loans from the International Monetary Fund and others.

The Pakistan Stock Exchange fell rapidly on Monday. The exchange suspended trading for an hour after a 5% drop in its main KSE-30 index.

Middle East stock markets tumbled as they struggled with the dual hit of the new U.S. tariffs and a sharp decline in oil prices, squeezing energy-producing nations that rely on those sales to power their economies and government spending.

Benchmark Brent crude is down by nearly 15% over the last five days of trading, with a barrel of oil costing just over $63. That’s down nearly 30% from a year ago, when a barrel cost over $90.

That cost per barrel is far lower than the estimated break-even price for producers. That’s coupled with the new tariffs, which saw the Gulf Cooperation Council states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates hit with 10% tariffs. Other Mideast nations face higher tariffs, like Iraq at 39% and Syria at 41%.

The Dubai Financial Market exchange fell 5% as it opened for the week. The Abu Dhabi Securities Exchange fell 4%.

Markets that opened Sunday saw losses as well. Saudi Arabia’s Tadawul stock exchange fell over 6% in trading. The giant of the exchange, Saudi Arabia’s state-owned oil company Aramco, fell over 5% on its own, wiping away billions in market capitalization for the world’s sixth-most-valuable company.

Beijing struck a note of confidence on Monday even as markets in Hong Kong and Shanghai tumbled.

“The sky won’t fall. Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal," wrote The People's Daily, the Communist Party's official mouthpiece.

China announced a slew of countermeasures on Friday evening aimed at Trump’s tariffs, including its own 34% tariffs on all goods from the U.S. set to go in effect on Wednesday.

The Australian dollar fell below 60 U.S. cents on Monday for the first time since the early months of the COVID-19 pandemic.

The drop reflected concerns over the Chinese economy and market expectations for four interest rate cuts in Australia this calendar year, Australian Treasurer Jim Chalmers said.

“What our modeling shows is that we expect there to be big hits to American growth and Chinese growth and a spike in American inflation as well,” Chalmers said.

“We expect more manageable impacts on the Australian economy, but we still do expect Australian GDP to take a hit and we expect there to be an impact on prices here as well,” he added.

The Trump administration assigned Australia the minimum baseline 10% tariff on imports in the the United States. The U.S. has enjoyed a trade surplus with Australia for decades.

Indian stocks fell sharply on Monday, seeing their biggest single-day drop in percentage terms since March 2020 amid the pandemic.

The benchmark BSE Sensex and the Nifty 50 index both dropped about 5% after trading opened but then recovered slightly. Both were later trading down about 4%.

President Donald Trump said Sunday that he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S., digging in on his plans to implement the taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.

Speaking to reporters aboard Air Force One, Trump said he didn’t want global markets to fall, but also that he wasn’t concerned about the massive sell-off either, adding, “sometimes you have to take medicine to fix something.”

His comments came as global financial markets appeared on track to continue sharp declines once trading resumes Monday, and after Trump’s aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.

“I spoke to a lot of leaders, European, Asian, from all over the world,” Trump said. “They’re dying to make a deal. And I said, we’re not going to have deficits with your country. We’re not going to do that, because to me a deficit is a loss. We’re going to have surpluses or at worst, going to be breaking even.”

Asian markets plunged on Monday following last week’s two-day meltdown on Wall Street, and U.S. President Donald Trump said he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S.

Tokyo’s Nikkei 225 index lost nearly 8% shortly after the market opened on Monday. By midday, it was down 6%. Hong Kong’s Hang Seng dropped 9.4%, while the Shanghai Composite index was down 6.2%, and South Korea’s Kospi lost 4.1%.

U.S. futures also signaled further weakness.

Market observers expect investors will face more wild swings in the days and weeks to come, with a short-term resolution to the trade war appearing unlikely.

Shipping containers are stored at Bensenville intermodal terminal in Franklin Park, Ill., Sunday, April 6, 2025. (AP Photo/Nam Y. Huh)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)