China-based aircraft and drone maker EHang Holdings soared as much as 25% on Friday after its passenger-carrying, unmanned aerial vehicle was cleared for takeoff.
EHang obtained the required type certificate from the Civil Aviation Administration of China (CAAC) for its EH216-S aircraft early Friday. The EH216-S is a two-passenger, autopiloted electric vertical takeoff and landing (eVTOL) aircraft for urban environments.
The certification means EHang's aircraft complies with all CAAC safety standards and airworthiness requirements. It also qualifies the EH216-S to conduct passenger-carry commercial operations, the company announced.
The news marks a "significant chapter in civil aviation history," founder and CEO Huazhi Hu said in the announcement. "We will launch commercial operations of the EH216-S unmanned eVTOLs, prioritizing safety above all. This will enable us to steadily progress towards our strategic goal to be a UAM platform operator."
It also marks the world's first type certification for unmanned eVTOL aircraft, EHang claimed on X, the social media site formerly known as Twitter.
The EH216-S eVTOL appears similar to a large drone. It has a 22-mile range, 21-minute flight time and 62-mile-per-hour cruise speed.
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Preparing For Takeoff
The company has various UAV models in its hangar and plans to launch a logistics platform to coordinate its drones.
EHang's 216F firefighting eVTOL is a first-responder drone, equipped with cameras, laser-guided window breakers, foam launchers and extinguisher bombs. The aircraft's max altitude of nearly 2,000 feet allows it to potentially combat fires in all but the tallest skyscrapers in China.
EHang also manufactures the EH116, which is the one-passenger version of the EH216. The company's Unmanned Aircraft Cloud System (UACS) is an airspace management, flight plan and logistics system to run commercial operations.
On Aug. 21, the CAAC approved EHang's UACS to begin trial operations. At the time, EHang noted that receiving type certification is a major step toward large-scale commercial operations.
Over the last two years, EHang conducted over 9,300 successful low-altitude flight trials across 20 locations in China, including 18 major cities for the UACS. The company previously announced plans to roll out operations in the Bao'an district government of Shenzhen once it receives type certification. It signed a memorandum of understanding with the municipality on a comprehensive strategic partnership in mid-July.
EHang Stock
EHang trades in American depositary receipts (ADRs) under the ticker EH on the Nasdaq. Shares rallied 136.6% in 2023 through Friday's close as the company gets closer to takeoff.
EH stock spiked 18.7% Friday following the announcement and jumped as much as 25% intraday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
