Ehang (NASDAQ: EH) – First-Mover Advantage in the Flying Vehicle Space
Ehang (NASDAQ: EH) just became the first company in the world to receive certification to operate pilotless, passenger-carrying eVTOL (electric vertical takeoff and landing) aircraft—and that’s not a small milestone. While competitors in the U.S. and Europe are still stuck in regulatory limbo, Ehang is preparing to launch actual tourist flights in China by the end of June.
This isn’t a concept play anymore. It’s a commercial rollout, and Ehang is years ahead of rivals like Joby and Archer in terms of government approval and real-world deployment. Bank of America just initiated coverage with a Buy rating and a price target of $26, which implies 36% upside from Friday’s close.
Here’s why we think the setup looks compelling:
- Zero competition in China through at least 2027. Thanks to China’s strict aviation certification process, analysts expect Ehang to hold 100% domestic market share over the next two years.
- National policy tailwind. China has identified eVTOL development as a strategic economic priority, with over 300 local governments announcing infrastructure and subsidy support for low-altitude flight.
- Revenue growth potential. BofA projects 103% revenue growth in 2025 and 82% in 2026, based on expected delivery volumes of 442 units this year and 813 units next year.
- Price and scale advantages. Ehang’s certified 216-S model sells for around $330,000 in China—dramatically cheaper than U.S. competitors, like Joby’s $1.3M aircraft—making it more accessible for mass adoption.
- Real demand. Each tourist attraction is expected to purchase 5–10 aircraft, and the total addressable market in China could eventually reach 80,000 units. That’s before you factor in long-term potential from urban air taxi services, where Bank of America sees demand reaching 200,000 units by 2035.
The risk isn’t zero—any accident would likely slow adoption and spark regulatory pushback. But with the Chinese government leaning in and the rest of the world still working through basic certification hurdles, Ehang has a rare opportunity to scale early.
This isn’t a moonshot. It’s a real, revenue-generating business in a space that’s still in its infancy—positioned as the only certified operator in a massive, government-backed market. For investors looking to take a calculated swing on the future of flight, this may be the one to watch.
