Hindenburg says EHang has ‘major credibility issue,’ last in line for takeoff

In a recently published report titled “EHang: Hollow order book and fake sales make this China-based eVTOL company last in line for takeoff,” Hindenburg research says “the company is a fatal accident waiting to happen, both for investors and for passengers.” According to Hindenburg, EHang (EH) has generated net losses since inception and currently trades at about 50.3-times its tangible book value, a significant premium to competitors Joby Aviation (JOBY) and Archer Aviation (ACHR). “Despite its premium valuation, EHang’s flagship aircraft is outmatched by competitors on key performance metrics,” it adds. “Overall, EHang seems to have a major credibility issue – whether it be by fluffing up its preorder book (which looks to almost entirely be vapor) or by brazenly misleading about early sales that bear all the hallmarks of fake revenue,” the report said. Shares of EHang have dropped over 13% to $12.98 in Tuesday morning trading.