The EHang Holdings (EH) stock price remains in a strong bear market after falling by about 25% from its highest level this year. It has moved to $22.45, down from the year-to-date high of $29.76, giving it a market cap of over $1.35 billion. So, what’s next for the eHang share price as it continues outperforming other eVTOL companies like Archer Aviation and Joby Aviation?
EHang stock price analysis
The daily chart shows that the eHang share price peaked at $29.76 in February, and has dropped to $22.5. It has moved below the 23.6% Fibonacci Retracement level at $25.
On the positive side, the eHang share price has bounced back after hitting the crucial support at $20, the 50% Fibonacci Retracement level. It has also remained above the 50-day and 200-day Weighted Moving Averages (WMA), a sign that bulls are in control.
Further, EHang stock price has formed a falling wedge pattern, a popular bullish reversal sign. This pattern comprises two descending and converging trendlines, with a breakout happening when they near their confluence level.
Therefore, the stock will likely have a strong bullish breakout, with the next point to watch being the year-to-date high of $29.76. A drop below the 50% retracement level at $19.6 will invalidate the bullish outlook.
EH stock by TradingView
The bullish case for EHang shares
There are a few reasons why one would consider buying EHang. First, it is a company in the electric vertical takeoff and landing industry that analysts believe will continue booming over time. The industry was valued at $0.76 billion in 2024, going up to $4.6 billion in 2030.
Second, Ehang’s business is seeing strong growth, a trend that may continue growing in the coming years. Quarterly results published this week showed that it delivered 78 units in the quarter, a 239% increase from the same period a year earlier. The deliveries were also higher than the 63 units it delivered in Q3.
Read more: eVTOL company Joby Aviation secures another key FAA approval
This growth translated to a strong revenue performance, with the figure growing by 190% to $22.5 million.
Third, EHang’s profitability is moving in the right direction, with the operating loss improving by 26.4% to $7.6 million. This trajectory means that the company will breakeven in the coming years.
Further, analysts are upbeat about the company’s growth as demand for its eVTOL solutions rise. The average estimate is that its annual revenue will rise by 90% this year to over 829 million CNY or $115 million.
EHang stock will also continue doing well because of the strong market size in China, where the middle class growing, and traffic congestion is a major issue. EHang is at an advantage because of its first-mover advantage in terms of technology and regulations in the country.
Analysts expect that the EHang share price has more room for growth. The average EH stock forecast is $26, higher than the current $22.45. Most of these analysts, including from companies like CICC, UBS, and Morgan Stanley, are bullish on the stock.
Read more: JOBY vs Archer Aviation: Which is a better eVTOL stock to buy?
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