Reported Earlier, Watching EHang; Hindenburg Research Issues Report On Co Titled 'EHang: Hollow Order Book And Fake Sales Make This China-Based eVTOL Company Last In Line For Takeoff'
Portfolio Pulse from Benzinga Newsdesk
Hindenburg Research has issued a report on EHang (NASDAQ:EH), a China-based eVTOL aircraft company, alleging that the company has a hollow order book and fake sales. The report claims that 92+% of EHang's claimed 1,300+ unit preorder book is based on 'dead' or 'abandoned' deals, failed partnerships, and newly-formed customer entities with no discernible operations. It also alleges that EHang's largest deal, a 1,000-unit preorder from United Therapeutics, is 'dead'. The report also raises concerns about EHang's financial position, noting that it has only $44.9 million left in cash, and its recent $23 million capital raise was led by a South Korean music producer with a questionable past. Hindenburg Research has taken a short position in EHang.

November 07, 2023 | 4:07 pm
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Hindenburg Research's report could negatively impact EHang's stock price in the short term. The allegations of a hollow order book and fake sales, if true, could undermine investor confidence in the company.
The allegations made by Hindenburg Research are serious and could significantly impact investor confidence in EHang. If the allegations are proven true, it could lead to a significant drop in EHang's stock price.
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