Get started

Ehang

The EHang Report Easily ExplainedEHang (EH) is an urban air mobility company, which is just a fancy way of saying drone, from China. Ehang’s stock crashed a whopping 62%, from $122 to $46, after a report was released. This report was released yesterday from Wolfpack Research, and I would like to go over some of the most important points from the report. Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. EHang's Empty Facilities The report starts with a brief summary of why EHang is a complete scam. Analysts from Wolfpack research visited EHang’s corporate headquarters / main manufacturing facility, and found out that it was practically empty. They roamed around the facility for 20 minutes, and couldn’t find anyone. The facility lacked advanced manufacturing equipment, a basic assembly line, and the hardest worker in the company was apparently this one security guard who was sitting down on the ground behind the bushes. This is surprising given that EHang supposedly claims to be full of world class proprietary technologies, sells drones that cost close to $300,000, and manufactures a product that could put the lives of its customers at risk if it were to be stolen, improperly operated, or tampered with. Wolfpack research has a good track record of having exposed other China-based companies, and the fact that the facility was completely empty just seemed awfully familiar. While the facility being empty doesn’t necessarily mean that EHang is a complete scam, at the least, it’s a good indication that the business is not what it claimed to be in the SEC filings. Pre-Manufactured Parts Besides employees, they also couldn’t find any industrial grade manufacturing machinery, assembly line, raw material inventory, or special work zones, which are actually very common in automobile or drone factories. Instead, it seemed highly likely that EHang was simply assembling pre-manufactured parts, as they found hundreds of boxes for parts that are used in EH216. They weren’t able to find any raw material or production equipment, and logically thinking, based on how small EHang’s actual input in creating the product is, it’s legally disputable as to whether the company can claim that their products are “manufactured by EHang”. As a comparison, they compared XAG’s facility to that of EHang’s, and both companies are located in Guangzhou. XAG manufactures unmanned drones and they look like a legitimate factory. So EHang, which manufactured drones that carry passengers, should look more robust than this. Even when comparing EHang to Robinson, a small helicopter company that is a potential competitor for EHang, Ehang’s facility looks nothing like theirs. The Yunfu Factory The analysts then debunk a lot of claims that EHang made about their supposed “manufacturing facility” in Yunfu. The first claim was that EHang had built a new production facility in Yunfu, but this turned out to be deceiving. While there was a large facility, EHang had simply rented the facility, and was in the process of retrofitting it. The second claim that EHang made, was that they had started manufacturing at the Yunfu factory in December 2020, but this claim was also false. This is what the reception for the factory looked like, and analysts were told by the Yunfu Park Committee that construction wouldn’t be complete until around February 2021. Most of the areas in the factory were either under construction or completely empty. And obviously, there weren’t any manufacturing equipment or assembly lines. The management committee also said that they were “uncertain whether or not Yunfu EHang’s funding would be available”, which raises a lot of questions about EHang’s supposed government support for this facility. Dr. Moore and T Motors Wolfpack spoke to Dr. Moore, who is the director of engineering for aviation at Uber, and discovered that Ehang uses hobby grade motors, which are not meant to propel aircrafts that carry passengers. Dr. Moore said that he “closely inspected and analyzed their configuration, and I see no significant IP anywhere." "They were using T motors. Those are hobby grade motors. Those are not aerospace products.” So then Wolfpack immediately went to research T motors, a Chinese hobby grade motor. In the custom section, where they offer original design manufacture services, or ODM services, they found something very familiar. In case you don’t know what ODM is, basically, T motor lets EHang choose the color of the motor casing, and lets EHang put their logo on parts that are designed and manufactured by T motors. Based on this, Wolfpack Research concluded that EHang was conducting light-assembly of parts they purchased from ODMs, whose motors shouldn’t be used to carry passengers. Kunxiang They also claimed that EHang created a paper company called Kunxiang, in order to pump up the stock’s price. 2 out of 3 addresses for the company Kunxiang were false, with one being an address for a hotel, and another being for an office located on the 13th floor, when the building itself had only 11 floors. Sham contracts with Kunxiang had been fabricated to pump up revenue, and make it seem like the company was growing at a rapid pace. Wolfpack Research believes that a whopping total of $33.4m from EHang’s entire revenue appears to be from sham contracts. Not to mention the fact that EHang has only collected cash for 20% of its reported revenue since its IPO, which amounts to $3.6m. What’s really suspicious about this is that they don’t charge interest on late payments, nor do they ask their clients for collateral. Deceiving Press Releases Most importantly, EHang has made extremely misleading press releases. In their Chinese press releases, they talk about misleading statements regarding regulations and licenses granted by the US and Canada. Conversely, in the English press release, they talk about regulatory approvals in China, so that both Chinese and Western investors have no idea as to what is actually happening. This is extremely deceptive. They have also omitted key words like ‘short term’, ‘one time’, ‘trial’, or ‘test’, when describing their flight approval, and add words like ‘passenger-grade’ and ‘commercial’, when describing their license. Ehang's Rebuttal To be fair, EHang has released a statement with the title: Ehang responds to deceptive Wolfpack Research Report. They say that they have forward-looking projections, statements, and predictions that are reasonable, and it’s not that they’re outright scamming, but that there are certain risks and uncertainties beyond the management’s control. To me personally, their report is not convincing at all. Conclusion The field of urban air mobility actually has potential. But with companies like EHang marrying social perception, innovation will be hindered. We’ve seen Nikola (NKLA) do this with hydrogen cars, and it seems like EHang is doing something similar, just to a worse degree. An SEC-led investigation is imminent. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
NASDAQ:EH
by Michael_Wang_Official
5
MIDCAP - TECH/AAV/SMARTCITIES - $EH EHang - GAP FILL ALERTFeb.16, short seller Wolfpack Research releases fraudulent hit piece, tanking the SP a whopping 62.69%! EHang Responds to "Deceptive Wolfpack Research Report" the same day. We've seen this before time and time again, with TSLA, PLTR, NIO, AMD and countless others... I was interested in this company before, but with a 60% sale, I can no longer remain on the sidelines. FA: - Best in class leader of a new industry: autonomous air mobility. In short, they make aerial drones. - They are the ONLY manufacturer, driver, regulator, air infrastructure builder, mechanic and more of this new industry. I am very bullish on the Smart Cities sector that is soon to be, and this is a core play within this space. - They have a potential tech monopoly on the urban air traffic control in smart cities, with their first mover advantage. Key points: - The most patents of any autonomous aerial company (147). - Current director is CEO of DHL Express China. - Already have regulatory breakthroughs in China, Austria, Canada, and South Korea. - Part of projects in Europe. - Developing an air ambulance. TA: - After a 62.69% selloff, SP is sitting at 0.382 Fib level! Doesn't get much lower. - Catching knives is not recommended, but I think this selloff was overdone. Verdict: - EH did run very hot indeed, but that said, this is a leader in a new industry... I cannot say no to these prices. This reminds me of NIO, but even better. - I don't know why anybody takes these short sellers seriously anymore. Strategy: - There is potential to swing lower, no obvious stop losses, and prepare to add to position. - Buy zone: 38-56 - SL: 22 - TP1: 94 - TP2: 134 - RRR: 2.18 - EOY PT: 205
NASDAQ:EHLong
by UnknownUnicorn1043646
EH, up trend and Elliot WavesNASDAQ:EH Hi guys, so this is my first analysis, so take it with a grain of salt. Not discussing fundamentals, but NASDAQ:EH seems a solid company with already some sales and also with some barriers removed (flying licences). In the UAM / eVTOL space I do think that it's the company with the best condition right now to e a long term hold. Having said that, we can see that NASDAQ:EH already enjoyed some nice gains, and we can also see a clear uptrend. Until this channel is broken, I don't see any signs of it ending right now. As such I've applied some Elliot Wave to see if I can find a good point to buy more stock. It already had a full Elliot Wave that started in January, a good ABC correction and I believe that it is going on another run until the top of the channel, or beyond, who knows. But that's beside the point. After this wave I'm expecting a nice pullback to give us a good window to buy more. So if all is like the same wave, I'm expecting a buy window (green rectangle) around the 110 - 124 range. Bear in mind that these conclusions are with the current info. If NASDAQ:EH has positive/negative news, this is not valid anymore. This is not financial advice and I own NASDAQ:EH Stock. Good luck. Leave a thumbs up if you liked this analysis.
NASDAQ:EHLong
by dmcosta
2
Ehang Holdings rocketed to the moon; wait for BUY signalEHang Trading has been a great stock to ride to the moon and get off before it's slow descent back to earth. Looking at the Fibo retracement and WATCHING for it to bounce, and flash the BUY signal with 8 confirmations. Looks like it'll rocket again. Strong company; great growth potential. Put it on your watchlist. Happy Trading, from CJ -- aka the greatest FURU. To find out more about The Ultimate Stock Indicator on Tradingview, please check my public profile.
NASDAQ:EHLong
by CJCHUN
Ehang - The Sky is The Limit - EHWe've been following Ehang since before its IPO. Back in 2016 it became the world's first AAV capable of carrying passengers. Still a long way to go, but on May 27, 2020, EHang obtained the world's first commercial pilot operation approval from the Civil Aviation Administration of China (“CAAC”) to use its EHang 216 passenger-grade AAVs for air logistics purpose. The EHang 216 received a special flight operations certificate (SFOC) from Transport Canada Civil Aviation (TCCA) for test flights in Québec, Canada. One of the things we love about this company is one of its founders Huazhi Hu who has the obsessive passion/determination in his company. TA: We're really planning for a long term hold here so not much TA to it. We bought around $10.98 and planning on holding long term. Currently up +240% return. Overbought signals at the moment and could see a pull back soon as we try and find support but we're still sitting at a relatively small market cap of $2 billion. Shoot us a like and follow and we'll be back with some updates. Cheers! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on here, expressed or implied herein, are committed at your own risk, financial or otherwise.
NASDAQ:EHLong
by MannyLo
3