EHang Holdings (EH) — First-Mover Advantage in eVTOL
EHang is shaping up to be one of the most compelling growth stories in China’s emerging electric vertical takeoff and landing (eVTOL) industry. Shares closed at $17.45 on August 21, but with JPMorgan initiating coverage at overweight and setting a $26 price target, there’s nearly 50% upside on the table.
What makes EHang stand out is its first-mover advantage. It’s the only company in China with key certifications in place, putting it years ahead of most competitors still trying to get commercial approval. That gap matters — the company is already scaling production toward 300–800 units annually between 2025 and 2027 and has logged valuable operator experience that others simply don’t have yet.
Demand also looks real and diversified. Near-term opportunities include sightseeing flights and public service uses in China, while longer-term potential spans cargo and intercity passenger transport on a global scale. With a backlog of over 1,000 units, EHang has visibility into growth that few other companies in this space can match.
On the financial side, the company is expected to turn the corner soon. Net profit is projected to grow at a compound annual rate of more than 300% between fiscal years 2025 and 2027. While delivery schedules may cause some bumps along the way, the trajectory is clear: breakeven is within reach, and profitability should accelerate as volumes ramp.
With the global passenger eVTOL market projected to grow into a $100 billion opportunity by 2040, EHang’s early lead gives it a legitimate shot at becoming a global player. For investors willing to look beyond the short-term volatility, the combination of backlog, production scaling, and regulatory lead makes this a high-upside opportunity.
