EHang Holdings Limited, the world's leading urban air mobility technology platform company, has taken a significant step towards revolutionizing transportation in China's Zhejiang Province. The company has signed a cooperation agreement with the government of Wencheng County, Wenzhou City, to jointly develop UAM and supporting public service ecosystems for the low-altitude economy.
As part of this groundbreaking initiative, Wencheng County Transportation Development Group has placed an order for 30 units of EHang's EH216-S aircraft. The customer has already paid 50% of the total contract price as a pre-delivery down payment, with the remainder due upon delivery. Furthermore, the group has ambitious plans to expand its fleet, with intentions to purchase an additional 270 units of the EH216-S by the end of 2026. To demonstrate their commitment, they have already paid a non-refundable deposit for this future order.
Wencheng County, renowned as one of the top ten ecological tourism cities in Zhejiang Province, presents an ideal setting for the implementation of low-altitude economy applications. The county's rich natural resources and scenic landscapes offer a perfect backdrop for aerial tourism and innovative commercial applications. EHang and Wencheng County will collaborate to pioneer the development of aerial tourism, providing visitors with thrilling aerial sightseeing experiences that showcase the region's natural beauty.
The partnership's immediate plans include establishing multiple aerial sightseeing routes within the year. These routes will cover popular attractions such as Tianding Lake, the Baizhangji Falls, the canyon, and the lush forests surrounding the area. Additionally, the county aims to set up regular operations of electric vertical take-off and landing aircraft, marking a significant milestone in the integration of UAM technology into everyday life.
Wencheng County's commitment to developing the low-altitude economy aligns with the central government's vision for innovative transportation solutions. The county has formed a dedicated committee to oversee the high-quality development of the low-altitude economy and has formulated a comprehensive implementation plan. Their ambitious goal is to transform Wencheng into a pioneering low-altitude economy zone by 2026. This transformation will involve creating more than 10 showcase applications, expanding the local low-altitude economy to achieve over RMB1 billion in market size of operational services, and opening up multiple low-altitude air routes.
Mr. Zhenhai Xing, Chairman of Wencheng County Transportation Development Group, expressed enthusiasm about the partnership, highlighting EHang's leading position in China's emerging low-altitude economy industry. He emphasized the company's achievement in obtaining airworthiness certifications for the EH216-S aircraft, placing them at the forefront of the industry. Mr. Xing outlined plans to explore and demonstrate a wide range of low-altitude applications, establish aerial sightseeing tourism routes, foster a thriving ecosystem of low-altitude economy service enterprises, and focus on recruiting and training specialized talent. By expanding the use of low-altitude technologies in public service domains, Wencheng aims to drive the clustering and accelerated development of the low-altitude industry in the region.
EHang's Founder, Chairman, and CEO, Mr. Huazhi Hu, reiterated the company's commitment to expanding low-altitude use cases globally and advancing the commercial deployment of passenger-carrying pilotless eVTOL aircraft. He expressed excitement about the collaboration with Wencheng County Transportation Development Group, emphasizing their shared goal of developing various pilotless low-altitude use cases. Mr. Hu highlighted the partnership's potential to promote the establishment of a low-altitude operation benchmark in Zhejiang and create a competitive advantage for the low-altitude economy in the East China region.
Nasdaq: EH
Current Price: $15.76
Change: + $0.39 (+2.54%)
Based on current technical analysis models, EHang's stock shows a bullish trend in the short term. The stock is currently in an uptrend, having broken through key resistance levels. Moving averages indicate a positive momentum, with the stock trading above both its 50-day and 200-day moving averages. The MACD (Moving Average Convergence Divergence) indicator suggests a bullish crossover, supporting the upward trend. Fibonacci retracement levels show potential support at $14.50 and resistance at $17.25. Bollinger Bands indicate increased volatility, with the stock price touching the upper band, suggesting strong buying pressure. However, investors should be cautious of potential overbought conditions in the short term.
