Recently, InvestorPlace contributor Matthew Farley suggested that EHang (NASDAQ:EH) stock could potentially turn $10,000 into $1 million. That’s certainly possible, but don’t expect it to happen in 2024 and always understand the risks involved. EHang is a premier player in an industry that’s exciting but is also in its infancy.
Just to recap, EHang is based in China and develops flying taxis, also known as electric vertical takeoff and landing aircraft. Yet, as we’ll discover, EHang’s aspirations extend beyond China’s borders. So, get ready to put multiple countries on your itinerary as we prepare for takeoff with EHang stock.
Get eVTOL Exposure With EH Stock
I’ll just state up front that EHang stock will probably be volatile while the eVTOL industry encounters operational and legislative obstacles. This is to be expected with any emerging technology.
It’s the main reason I only suggest holding a small share position in EHang stock. Plus, be prepared to hold your shares for all of 2024 and possibly several years after that. This is a marathon, not a sprint.
There are reasons to be confident in EHang, even if you’re reluctant to invest in a China-based business. Impressively, EHang’s revenue soared 248% year over year in 2023’s third quarter. The Civil Aviation Administration of China certified EHang’s EH216-S aerial vehicle system for safety standards and airworthiness.
Besides, EHang is clearly making operational progress in its home country. The company successfully completed passenger-carrying flight demonstrations in the Chinese regions of Guangzhou and Hefei. In addition, EHang launched the UAM Operation Demonstration Center (with UAM standing for Urban Air Mobility) in the Bao’an district, Shenzhen, China.
EHang’s International Ambitions
While EHang is certainly making inroads into China’s eVTOL industry, this market could end up being global in scope. Hence, it’s encouraging to learn that EHang is making its mark outside of China’s borders.
Specifically, EHang formed a strategic partnership with Wings Logistics Hub to introduce EHang’s autonomous eVTOL aircraft to the United Arab Emirates. According to the press release, Wings Logistics Hub “plans to purchase up to 100 units of EH216 series eVTOLs from EHang.”
EHang also disclosed that the company is joining the Smart and Autonomous Vehicle Industries Cluster in Abu Dhabi, UAE. Moreover, EHang expects to begin its initial aircraft deliveries to Wings Logistics Hub in 2024’s first quarter.
This news item is about more than Wings Logistics Hub’s purchase order for EHang’s aircraft. Ultimately, it signifies a major geographic expansion for EHang. Evidently, the company is prepared to operate outside of China even if this means blazing a trail in largely untapped eVTOL markets.
This Could Be a Banner Year for EHang Stock
Sure, it’s risky to invest in EHang because the global eVTOL market is still emerging and unproven. Yet, if this industry takes off (literally and figuratively), EHang stock might eventually turn $10,000 into $1 million.
So, strap in and get ready for volatility and excitement in 2024. You just never know where EHang might expand its operations in the coming months. If you’re on board, feel free to give EH stock a try with a small but confident share position today.
On the date of publication, David Moadel 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.
