Shares of EHang Holdings Ltd (NASDAQ: EH), a leading player in the electric vertical takeoff and landing (eVTOL) aircraft industry, surged 5.05% intraday on Wednesday, fueled by optimistic projections from an industry body regarding the rapid growth of China's low-altitude economy.
According to a report released by the China Low Altitude Economic Alliance, the country is expected to have 100,000 eVTOLs serving families and travelers by 2030. This bullish outlook is driven by several factors:
- Air traffic networks and ground flight service facilities in major Chinese cities are projected to be largely completed within the next 2-3 years, paving the way for widespread commercialization of eVTOLs.
- The prices of eVTOLs are anticipated to drop significantly from the current level of around RMB 10 million ($1.4 million), with a four- or five-seat eVTOL potentially costing between RMB 2-3 million by 2030.
- Unmanned technologies, including artificial intelligence and human-machine interaction, will be widely adopted in aerial vehicles, enabling applications in logistics, agriculture, emergency rescue, and urban management.
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