EHang Lands Battery Supplier Stake As Its Self-Flying Vehicles Near Takeoff
Portfolio Pulse from The Bamboo Works
EHang Holdings Ltd. (NASDAQ:EH) has made a strategic investment in lithium battery maker Shenzhen Inx Technology. The deal will allow EHang to vertically integrate a key part of its supply chain by providing a dedicated source of batteries for its autonomous aerial vehicles (AAVs). EHang's AAVs are nearing regulatory approval in China, which will allow for large orders and potential profitability. The company's shares rose by 2.7% following the announcement but have since fallen due to concerns about the slowing Chinese economy.
September 27, 2023 | 3:06 pm
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NEUTRAL IMPACT
EHang's strategic investment in Shenzhen Inx Technology could secure a dedicated battery source for its AAVs, potentially reducing costs and ensuring supply. The company's shares initially rose following the announcement but have since fallen due to concerns about the slowing Chinese economy.
The investment in Shenzhen Inx Technology could be beneficial for EHang as it provides a dedicated source of batteries for its AAVs, potentially reducing costs and ensuring supply. However, the company's shares have been impacted by concerns about the slowing Chinese economy, which could affect demand for EHang's products.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
EHang's current valuation translates to a price-to-book (P/B) ratio of 80, compared to just 2.4 for German peer Lilium (NASDAQ:LILM).
The comparison of EHang's P/B ratio to that of Lilium's indicates a significant difference in valuation between the two companies. However, the impact of this on Lilium's stock is uncertain.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50