EHang: Beyond Short-Term Challenges, Regulatory Approvals Signify An Upside

Summary

• I am bullish on EHang due to its regulatory breakthroughs, including the Air Operator Certificate, enabling commercial eVTOL operations and market leadership.
• Short-term sales declines in Q1’2025 are temporary, driven by procurement timing. I expect a strong rebound as deliveries ramp up post-approval.
• EHang’s production is scaling rapidly, supported by major partnerships, facility expansions, and a robust backlog, positioning it ahead of competitors.
• Despite operational losses, EHang’s strong balance sheet, high growth rate, and justified premium valuation make it a compelling buy for long-term investors.

Pornpimone Audkamkong

Thesis Statement

I am bullish on EHang Holdings Limited (NASDAQ:EH), driven by the regulatory approval of the Air Operator Certificate (AOC). This is an important milestone for EHang because it opens China’s commercial human-carrying low-altitude travel. Other

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.