Joby Aviation (JOBY 1.27%) The stock posted explosive gains in Friday trading. The flying electric vehicle (EV) specialist’s stock price rose 18% as of 2 p.m. ET.

Just before the market closed yesterday, Bloomberg published a report saying the Biden administration was considering a ban on drones using Chinese technology. Joby Aviation stock is surging today on potential regulations that will benefit the company’s growth trajectory.

A ban on Chinese drones and aircraft could boost Joby Aviation

The Biden administration — which has about two and a half weeks left in office — is reportedly considering a ban on Chinese-made drones and drones based on Chinese technologies. If there is no executive order implementing such a ban during the remainder of Biden’s term, it is possible that a similar regulation will be introduced under the new Trump administration. If the US government pursues such a move, it could ultimately benefit Joby Aviation.

Joby Aviation was an early leader in flying electric vehicles and a US-based company headquartered in California. While the company’s air taxis have used human pilots for test flights, it’s likely that remote control and self-driving capabilities will be introduced in the not-too-distant future. As the US considers a possible ban on Chinese drone and aircraft technologies for security reasons, it is not unreasonable to assume that key potential sources of competition for Joby could be taken off the table.

Joby’s prospects could improve on several levels

As the company seeks regulatory approvals for its craft and prepares for commercialization, eliminating some of its biggest potential sources of competition would be a good start for Joby in 2025. Price competition with Chinese vehicles has become a major challenge for players in the space Electric cars are being developed and represent significant pressure on the flying electric vehicle market unless there are high tariffs or outright bans. Tensions between the US and China are rising, and the potential use of drones and other vehicles as weapons has emerged as a major defense issue.

Reports of a possible ban on Chinese drones and other aircraft not only potentially strengthen Joby’s competitive position in the commercial market, but also highlight the company’s growth potential in the defense industry. Interest in flying electric vehicles and hybrid aircraft is increasing, and Joby is at the forefront of an emerging vehicle category that could be widely used in the defense industry.