EHang Holdings Ltd (NASDAQ:EH) represents a new kind of EV stock.
It leads the Urban Air Mobility sector in China with its autonomous aerial vehicle technology aimed at disrupting transport and logistics, creating smart cities. Yet, many investors believe this EV stock is overvalued at nearly $18 per share.
EHang is a pioneer in the Chinese electric vertical takeoff and landing sector. The first public company in this space, EHang has clearly made waves globally.
While it shows promise with 23% year-over-year revenue growth, profitability remains a challenge, with a $10.4 million loss in Q2 2023. Yet, EHang’s EH216 air taxi, priced at over $300,000, is a remarkable achievement.
However, despite these numbers, it is no secret that Ehang is still in the early stages of development and has yet to reach its full potential.
With the continuing trend of electric vehicles and interest in air taxis, this EV stock is a promising option for investors looking to take advantage of the urban mobility space.
Let’s delve into the facts first in this article.
A Different EV Stock
Investing in EHang comes with risks. This EV stock has been highly volatile, with significant price fluctuations in recent times. However, in July, the company received a substantial private placement of $23 million from strategic investors.
EHang established a strategic partnership with the Bao’an District Government in China’s Shenzhen municipality to support the assembly and delivery of EH216-S autonomous aerial vehicles. The exact cost wasn’t disclosed, but his partnership marks a pivotal moment for EHang.
EHang is deeply rooted in an extensive testing network, covering 19 sites in 17 Chinese cities, with over 8,000 trial flights. It’s ready for the eVTOL future.
EHang Holdings stands out as a prime Chinese eVTOL investment option, notably because of its existing revenue generation.
While EHang saw its revenues drop to $1.4 million in Q2, the company…