Today, EHang Holdings (NASDAQ:EH) and EH stock are on quite the roll. This stock is up more than 20% at the time of writing on significant volume.
EHang is a unique company in that its business model is something out of a science fiction book. The company touts itself as the world’s leading autonomous aerial vehicle company. In other words, EHang makes flying cars.
This autonomous aerial vehicle company’s mission is to “make safe, autonomous and eco-friendly air mobility accessible to everyone.” Indeed, today’s news indicates this mission could be closer to becoming reality than many early investors thought.
Let’s dive into why EH stock is taking off today.
EH Stock Ascending on News of Trial Flight
Today, EHang announced it has successfully performed its first trial flight of its flagship AAV EHang 216 passenger-grade vehicle in Japan. This flight was done with permits obtained by the Japanese Ministry of Land, Infrastructure, Transport and Tourism. It appears more test flights are on the horizon. However, a successful maiden flight is always a good sign. And today, investors are pricing in heightened enthusiasm over this stock, for good reason.
The Japanese Aero & Space Industry Cluster Study Group organized a “Leading the Revolution of Urban Air Mobility” event. EHang’s flight was the talk of the event, with government officials speaking high praise of what EHang has been able to accomplish. As per the press release, Japan’s chief cabinet secretary commented, “At present, many companies around the world have launched such flying car projects, and are conducting research and development and demonstration projects. As the government, we will actively improve aviation regulations while supporting private enterprises in a timely and appropriate manner.”
Indeed, it appears the future is closer than we think. Investors looking to take advantage of the long-term potential growth of EH stock have understandably gotten aboard today. Whether it will ultimately be a smooth ride or one with turbulence remains to be seen.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.