News and Commentary.  One of few publicly traded drone companies, EHang stock has risen significantly in the last month – and it’s reached the attention of the broader investment community, as even newsletter Motley Fool weighs in on why the stock has been doing so well.

The rise in EHang stock might be less of a mystery to the drone industry.  EHang has gone from demonstrating a prototype at the 2016 CES show to demonstrating their working passenger drones throughout Korea in 2020.  At DRONELIFE, we’ve written about EHang so often in the last five years that stories claim more than four entire pages in our archives.   From the recreational “Ghost Drone” of 2015 to the advanced autonomous aerial vehicles (AAV) of 2021, we’ve seen EHang struggle at times: but in the last few years, thrive beyond the imagination of an earlier industry.

Now, there are many factors that could be causing new interest in EHang stock.

Solid Government Support

That EHang has the support of the Chinese government is clear.  China has sponsored testing of passenger drone applications that include cargo delivery, emergency services, search and rescue, and firefighting.

China is a very large country with vast differences in terrain and existing road infrastructure throughout – and as such, could benefit enormously from the widespread implementation of AAV.  Much like countries that did not already enjoy widespread and robust land-based telecom leapfrogged other countries into cellular telecom, China could adopt passenger drones much more quickly in less accessible areas than countries with a more established road infrastructure.   China’s expressed choice of EHang as their AAV pilot partner, combined with a state resolution to prioritize urban air mobility, are strong tailwinds for EHang.

Global Spread

Outside of China, EHang has been signing partnership deals throughout Asia and Europe, and looks ready to take a leading position in urban air mobility trials around the world.  In 2020, EHang partnered with the government of South Korea: they’ve launched a demonstration of passenger drones across the country, and South Korea has said that urban air mobility programs must be a focus point of development.  In addition, EHang has made agreements with cities in Spain, Austria and elsewhere in Europe and Canada to demonstrate their capabiltities.  It’s an upward spiral: as EHang gets more opportunities to fly, their platform becomes the most tested and well-known in the industry – and safety data accumulates.

Rumors of a New Partnership?

It’s offially “buzz.” We read it on EVTOL.com, we heard about it from DRONEMASTERS (credit where credit is due, people): German car manufacturer Volkswagon is the latest to express interest in Autonomous Aerial Vehicles (AAVs).  Is a Volkswagon passenger drone in the works? Or is Volkswagon interested in partnering with EHang – and is this giving EHang stock a boost?  Could be.  Automotive industry giants are rushing to the urban air mobility arena. Hyundai, Audi, GM, Porsche and more have all made announcements about new projects and new prototypes.  Volkswagon could be merely expressing interest – or could be ready to jump in with one of the most well-known and well-tested platforms already on the market.