FAST NEWS: EHang’s aerial vehicle approved for production
The latest: Autonomous aerial vehicle (AAV) maker EHang Holdings Ltd. (EH.US) announced Sunday its passenger-carrying unmanned aerial vehicle (UAV) has obtained a production certificate from the Civil Aviation Administration of China (CAAC), following its receipt of type and standard airworthiness certificates, making it the world’s first electric vertical takeoff and landing (eVTOL) aircraft with all three certificates.
Looking up: Receipt of the production certificate means EHang can start to mass produce the aircraft, in a major step towards the commercialization of the company’s first major product.
Take Note: Mass production of the EH216-S will significantly boost EHang’s costs and promotional expenses.
Digging Deeper: Founded in the South China city of Guangzhou in 2014 and listed on the Nasdaq in 2019, EHang is one of a group of global companies developing small and self-piloted aerial vehicles. The company’s receipt of the three certificates from China’s aviation regulator means the aircraft’s design complies with the country’s safety standards, airworthiness and production requirements. The EH216-S is a manned vertical take-off and landing UAV that can also be flown without a pilot onboard. It can be used for passenger transport, air tours, logistics and medical emergencies. Its commercial operation is expected to start from its original pilot cities including Guangzhou and Shenzhen.
Market Reaction: EHang’s shares rose 4.9% on Monday to close at $20.30 after the announcement. The stock now trades near the upper end of its 52-week range.
Translation by A. Au
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