Carmaker Stellantis (STLA.MI) will help build Archer Aviation’s (ACHR.N) electric aircraft and increase its stake in the U.S. company, the two firms said on Wednesday, driving Archer’s shares up nearly 17%.

Industrial firms and new startups are flocking to invest in air taxis, which can take off and land vertically to ferry travellers to airports or on short trips between cities, allowing them to beat traffic.

The vertical take-off and landing (eVTOL) Midnight aircraft, which can carry four passengers and a pilot with a range of 100 miles (161 kms), will be manufactured in Covington, Georgia, from 2024, with a production target of 2,300 aircraft annually, Archer and Stellantis said in a joint statement.

It is designed for back-to-back short distance trips of around 20 miles, with a charging time of approximately 10 minutes in-between.