Which Flying Car Stock is Leading the Pack?

Shares in this maker of autonomous air vehicles may have nosedived, but approval for commercial flights could help the stock to fly higher.

Key Takeaways

• EHang is the first and only eVTOL company to be given clearance to carry paid passengers.

• Full-year adjusted profitability was achieved for the first time last year and GAAP profitability is expected in 2026.

• The company has stressed that it will not be materially impacted by Trump’s tariffs because it does not rely on any US-made components.

1. EHang: the Fundamentals

EHang [EH] makes electric vertical take-off and landing (eVTOL) aircraft.

Based in Guangzhou, the company was founded in 2014 by graduates from Peking University and Tsinghua University in China, and Duke University in the US.^[1]

Before going public in 2019, EHang’s core business was manufacturing and selling consumer drones, according to its F-1 filing.^[2] However, in the lead up to its Nasdaq listing, the company shifted focus to what it calls ‘air mobility solutions’, i.e., selling passenger-grade autonomous air vehicles.

In 2018, the air mobility solutions segment accounted for just 4.68% of total revenue, but this rose to 73.69% for the first six months of 2019.

The EHang share price is up 26.24% since January 1, and up 10.76% in the past 12 months through May 14. While the most recent close of $19.87 is 91.06% above its 52-week low of $10.40, set on August 5 last year, it is down 33.23% from its 52-week high of $29.76, set on February 14.

For comparison, the SPDR S&P Kensho Smart Mobility ETF [HAIL] is up 1.77% since the start of the year and up 1.12% in the past 12 months. As of May 14 the ETF had EHang as its fifth-biggest holding, alongside electric vehicle makers including Li Auto [LI] and Rivian [RIVN], ride-hailing app Uber [UBER], and technology and semiconductor stocks such as Nvidia [NVDA].^[3]

HAIL currently holds neither of EHang’s two main competitors: Archer [ACHR] and Joby Aviation [JOBY], both of which operate out of California.

This deep dive will detail how EHang has established itself as the leader in the eVTOL market, then unpack its long-term growth prospects.