Why Is EHang Holdings Stock Gaining Today?

Author: Lekha Gupta | April 08, 2024 06:51am

EHang Holdings Limited (NASDAQ:EH) shares are trading higher after the company attained the Production Certificate (PC) for its EH216-S passenger-carrying pilotless electric vertical takeoff and landing (eVTOL) aircraft from the Civil Aviation Administration of China (CAAC).

This achievement is a significant leap towards mass production for the eVTOL aircraft and the following commercial operations.

Earlier, the company had achieved the Type Certificate (TC) and the Standard Airworthiness Certificate (AC) for the EH216-S.

Heyong Lin, Director of the Airworthiness Division of the Central-South Regional Administration of the CAAC, stated, “In the past six months, EHang’s EH216-S has secured three groundbreaking achievements in airworthiness certification: the world’s first TC, PC and standard AC for the passenger-carrying UAV. EHang epitomizes a pioneering enterprise of new business model in the Central and Southern region, representing new quality productive forces.”

Huazhi Hu, Founder, Chairman and CEO of EHang, stated, “The issuance of the PC is pivotal for the EH216-S as it opens the door to mass production, and a crucial step for our advancement towards commercial operations. As of today, the EH216-S has secured the TC, PC, and Standard AC from the CAAC.”

“All the notable accomplishments relied on the collaboration and tireless efforts of the CAAC’s expert team and EHang’s team, and reflected our collective innovation, wisdom and expertise in aircraft design, manufacturing, quality management and other fields.”

Last month, EHang established Japan’s first Urban Air Mobility Center, facilitating pilotless eVTOL flights in Tsukuba City, Ibaraki Prefecture.

Investors can gain exposure to the stock via SPDR S&P Kensho New Economies Composite ETF (NYSE:KOMP).

Price Action: EH shares are up 5.22% at $20.37 premarket on the last check Monday.

Posted In: EH KOMP