Why Underrated Flying Car Stock EHang Could Soar in 2024

EHang (NASDAQ:EH), a global passenger autonomous aerial vehicle technology platform company, focuses on producing AVVs for passenger transportation, logistics, smart city management, and aerial media products. Recently, China’s Civil Aviation Administration officially approved EHang’s unmanned aircraft cloud system, enabling commercial operations. This will have big implications for EH stock.

The company is expanding its global presence, particularly in China’s tourism sector. Accordingly, EHang has become a key player in the eVTOL aircraft market. The company envisions a future with self-flying taxis, and looks to establish a strong position in this rapidly growing space.

In early 2021, EH stock surged by almost 550%, reaching $129 per share. However, the stock later declined significantly, stabilizing around $14 per share, marking a nearly 90% decrease from its peak. Despite this, with Chinese regulatory approval, EHang has the potential to demonstrate the profitability of flying vehicles/taxis.

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Here’s what you need to know before betting on EH stock.

Recent Updates and News

Apart from EHang’s primary Chinese operations, notable recent developments include the establishment of its first European UAM Center in Spain at Lleida-Alguaire International Airport (LEDA). This center, a global exemplar, is dedicated to integrating unmanned eVTOL aircraft operations seamlessly with airport infrastructure and air traffic management systems.

EHang, with Aeroports de Catalunya, inaugurated a pioneering UAM center in Europe, positioning the region at the forefront of Advanced Air Mobility. The EH216-S eVTOL system, certified by China’s CAAC, achieved a historic milestone as the world’s first unmanned eVTOL certified for commercial passenger operations in China. The European UAM Center gathers crucial operational data for eVTOL integration, setting global standards with its EASA-compliant vertiport for intelligent deployment.

Progressive Flights

After reaching highs of $25.80 in July, EH stock corrected to $16.80, presenting an accumulation opportunity. Notably, it secured the world’s first type certification for unmanned eVTOL from China’s Civil Aviation Administration, paving the way for commercialization.

With a sales pipeline of 450 units in Asia and the recent opening of Europe’s inaugural urban air mobility center in Spain, EHang remains prominent amid positive developments.

EHang completed 42,000 demo flights across 14 countries, paving the way for an expanded sales pipeline. Notably, 55.7% of the team comprises R&D employees, and with 633 issued and pending patents, innovation remains a driving force for the company’s growth.

Ready for Take-Off

In November, EHang released its Q3 earnings, showing revenue at $3.9 million, a 248% year-over-year increase. While unprofitable, the net loss improved by about 12% to $9.2 million. CEO Huazhi Hu highlighted the TC for EH216-S, a groundbreaking achievement.

In October, EHang secured the type certificate for EH216-S from the Civil Aviation Administration of China (CAAC), indicating compliance with safety standards and permitting commercial operations for passenger-carrying UAVs.

This Flying Car Stock Is Worth Buying, But Be Aware of The Risks

With a market cap of $1.5 billion, EH stock presents plenty of upside potential for those with the stomach for risk. With that said, we’ve seen just how far this stock has declined in the past, and such a route isn’t out of the question moving forward. Thus, I’m of the view that a small speculative investment is okay, but I wouldn’t bet the farm on this name right now.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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