EHang stock

Drone taxi company EHang stock opens year lower than its IPO price

Will 2020 be the year of drone taxis? I’m going to peg it on ‘unlikely.’

Drone taxi company EHang, which made its debut on the stock market in December 2019 with a public offering price of $12.50 per share, opened on its first trading day of 2020 in the $10 realm.

But $10 might not be too shabby. While EHang stock hit as high as $13.70 per share, it has also dipped as low as $7.84 in the short timespan that it’s been on the public market. That gives the company a market cap of around $331 million.

A journalist flew on the Air Taxi EHANG 216 during the “Urban Air Mobility” in Vienna, Austria, in April 2019.

The company initially filed to raise an ambitious $100 million in an IPO, with reports in spring 2019 suggesting it could raise as much as $400 to $500 million. The company only raised $43 million in its IPO, and investors mostly remain hesitant as the company is unprofitable. Plus, EHang’s revenue declined in 2019 from 2018.

GhostDrone flight
Me, trying to fly the GhostDrone 2.0 VR. I crashed it almost immediately, despite the fact that I never even had a controller!

EHang has pivoted a bit in the drone industry (hey, many companies have). The company briefly made consumer-grade drones. Though, I reviewed one, the GhostDrone 2.0 VR back in 2016, and strongly disliked it, as I found it a worst-of-both-worlds combo of gimmicky and tough to use.

Later, the company tried to tap into Intel’s successes with drone light shows. But their (mis)step into drones as entertainment didn’t go as planned. Ehang in 2018 intended to (and did briefly) break Intel’s record for largest drone light show display. But the show was largely classified as a disaster, as signal interference caused some drones to break from the formation, and some even fell out of the sky. (Intel has since taken back its record.)

Now, the company is positioning itself pretty much entirely as a passenger drone transport company.

During the “Urban Air Mobility” even in Vienna, Austria, in April 2019, EHang and Austrian-based aerospace company FACC said they had plans to produce 300 Taxi drones by 2020.

“Our mission is to make safe, autonomous, and eco-friendly air mobility accessible to everyone,” EHang said in a prepared statement. “EHang provides customers in various industries with AAV products and commercial solutions for urban air mobility, including autonomous passenger transportation and logistics, smart city management, and aerial media solutions.”

EHang stock
EHang caught big attention during CES in 2016 when it showed off its EHang 184 drone.

In fact, EHang was the company behind the publicity stunt back in 2017 when Dubai’s transportation agency chief said that human-ferrying drones would begin transporting people across the city by that summer. The drone was supposedly able to carry a person and/or their luggage for a combined total weight of 100 kilos (220 pounds). Ehang said their drone would have four rotors (though they now have an octocopter model), span 13 feet wide and be able to fly just over 30 miles at speeds of 100 miles per hour.

Of course, it’s now 2020 and you still cannot just ring up a drone on your phone to drive you around Dubai.

Did you invest in EHang stock? Would you consider it? Tell us why or why not in the comments!

6 Comments

  • EHang has a long way to go. “Our mission is to make … air mobility accessible to everyone” able to transport “a person and/or their luggage for a combined total weight of 100 kilos.” Which “everyone” do they mean? I am 6’ 3” (190cm) and about 100 kg on the dot. My dimensions will not fit in the EHang prototype and I am at the weight limit without any luggage at all, maybe even without my wallet. I think the Airbus PopUp concept has much more potential, although it also has much greater infrastructure requirements.
    https://www.italdesign.it/project/popup/
    https://youtu.be/ZaKD6LYj5eE

  • Ellis says:

    I bought 172 shares. This is the future. I like Ehangs concept. There are other major companies in the planning stages. I.will hold my investment for the long term. Maybe eventually it may pay for my own vehicle.

  • zen says:

    intereting technology and since like ehang is way ahead of airbus and boeing. i have seem their designed drone. too bulky , aerodynamic dragged and design not streamlined. ehang frame is streamlined and much ahead, wish her all the best !!
    remember always safety first !

  • Anna says:

    Ii believe this will be a good investment. Good luck

  • Shavon Miller says:

    I think they are going after the wrong market (taxi service). Too expensive, this should be something I can and take to the lake or fly around a mountain or even fly around a large farm area. Being place on a yacht to fly around the Islands. I would want to fly it myself, it should be easy to operate like a regular drone.

  • I brought 10000 of these at 8 usd

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