The shares were targeted (successfully) by Wolfpack Research, and arguably obtaining certification is taking much longer than market expectations. The shares initially screamed up over 500%, and then experienced a 96% drawdown before rising over 300% from its historic low in October 2022. Over 2 years have passed since our original piece. At this current juncture, the company has reached the final stage before becoming officially able to sell and operate its AAVs. Interest has consistently grown around the world, and there are now 1,200 plus unfulfilled unit orders for the flagship E216 series, as well as some for the long-range VT-30.Ĭrucially, there is no official timeline as to when certification will be issued, although 'around January' (assuming 2023 here but no year stated) was mentioned in the Q3 FY12/2022 conference call.
However, after more than 6,800 test flights and with 15 operational sites primarily on the mainland ( page 5), EHang is closer than ever to becoming the global first AAV (autonomous automotive vehicle) manufacturer and flight operator. Management is keen to stress that as a world-first initiative, obtaining any type of official certification will and is indeed taking time. We want to assess whether the core argument - state-sponsored activity resulting in certification for commercial operations - remains intact.
#Ehang drone stock update#
We want to update our view from May 2021 where we rated the shares as a buy (the original rating is here from December 2020). Key financials with consensus earnings estimates (Company, Refinitiv) Our objectives Key financials with consensus earnings estimates Peers include Joby Aviation ( JOBY ), Lilium ( LILM ), Archer Aviation ( ACHR ), and Blade Air Mobility ( BLDE ).
#Ehang drone stock verification#
A working group to progress certification of the EH216 model passenger drone was formed by the CAAC in April 2021, and in December 2022 entered into the final phase of Demonstration and Verification of Compliance after all the certification plans were officially approved by CAAC ( page 1 ). It has the support of the Chinese Aviation Administration of China (CAAC), the aviation authority of the People's Republic of China. Quick primerĮHang is a Chinese urban air mobility ("UAM") company developing and pioneering the use of passenger drones. However, given we are now relatively close to a positive outcome, we reiterate our buy rating.
The time taken to date has been longer than expected, and risks remain over delays. Ethan Miller/Getty Images News Investment thesisĮHang ( NASDAQ: EH) has made concrete progress in obtaining certification from the Chinese Aviation Administration of China.
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