A flying car may be coming sooner than was previously thought as Porsche (PAH3.DE) and Boeing (BA) have entered into an agreement to explore “urban traffic” in the air. The companies are looking to discover the opportunities in the urban air mobility market, which could lead to an all-electric flying car in the near future.

Through the partnership, Porsche and Boeing will leverage their strengths as they uncover the future of urban air mobility vehicles, the companies announced on Thursday. An international team will be created to research the market potential for such vehicles and possible uses of flying cars.

Boeing subsidiary Aurora Flight Sciences will also work on the project, which will include developing a concept “fully electric vertical takeoff and landing vehicle." Porsche will also integrate its subsidiaries Porsche Engineering Services GmbH and Studio F.A. Porsche to development and test the prototype.

“Porsche is looking to enhance its scope as a sports car manufacturer by becoming a leading brand for premium mobility,” Detlev von Platen, member of the Executive Board for Sales and Marketing at Porsche AG said.

“In the longer term, this could mean moving into the third dimension of travel. We are combining the strengths of two leading global companies to address a potential key market segment of the future,” he added.

Porsche and Boeing are banking on a future for flying vehicles as they cited a forecast by Porsche Consulting that estimated that the urban air mobility market will increase demand after 2025. The study also suggested that urban air mobility vehicles will transport passengers, quicker and more efficiently that traditional modes of transportation at a lower cost as well.

“This collaboration builds on our efforts to develop a safe and efficient new mobility ecosystem, and provides an opportunity to investigate the development of a premium urban air mobility vehicle with a leading automotive brand,” said Steve Nordlund, vice president and general manager Boeing NeXt. “Porsche and Boeing together bring precision engineering, style and innovation to accelerate urban air mobility worldwide.”

Shares of Porsche stock were up 3.22 percent as of 12:56 p.m. ET on Friday while shares of Boeing stock were up 0.51 percent at the same time. 

2543043_collaboration_between_porsche_and_boeing_2019_porsche_ag Porsche and Boeing have announced an agreement to develop urban air mobility vehicles. Photo: Porsche AG