FAST NEWS: EHang’s aerial vehicle gets world’s first regulatory approval

The latest: Autonomous aerial vehicle (AAV) maker EHang Holdings Ltd. (EH.US) announced last Friday that its self-developed passenger-carrying unmanned aerial vehicle (UAV) has obtained a type certificate from the Civil Aviation Administration of China (CAAC), making it the world’s first UAV vehicle to receive such certification.

Looking up: The certification by China’s civil aviation regulator suggests that EHang’s UAVs are qualified for manned commercial operations, which will help it win more orders and increase its revenue.

Take Note: The company’s costs and promotional expenses are likely to increase as the vehicle, the EH216-S, is gradually put into commercial operation.

Digging Deeper: Founded in China’s southern city of Guangzhou in 2014 and listed on Nasdaq in 2019, EHang is one of a group of global companies developing small and self-piloted aerial vehicles. The awarding of a type certificate for the EH216-S means that its design fully complies with the safety standards and airworthiness requirements of the CAAC. EH216-S is a manned vertical take-off and landing UAV capable of being unmanned and can be used for passenger transportation, air tours, logistics and medical emergencies. The company said its commercial operation will start from its original pilot cities such as Guangzhou and Shenzhen.

Market Reaction: EHang’s shares surged 18.7% on last Friday 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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