EHang Shares Plummet on Q2 Sales Miss and Downgraded 2025 Outlook

EHang Holdings Ltd's shares declined over 10% after missing Q2 sales expectations by $5M and cutting its 2025 sales forecast. Despite a profit turnaround to $0.02 per share, investors reassess the company's growth potential. Analysts forecast a 48.07% upside, with a consensus rating of "Outperform." The GF Value estimate suggests significant undervaluation, with a potential upside of 762.56%.

EHang Holdings Ltd (NASDAQ: EH) experienced a significant drop in its stock price, declining by over 10% premarket, following the release of its Q2 earnings and a revised 2025 sales forecast. The company's shares fell to $16.21, down from $18.00 the previous close, as investors reacted to the news.

The autonomous aircraft maker reported Q2 revenues of 147.2 million yuan, falling short of analysts' expectations of 181 million yuan [1]. In a statement, EHang said the new revenue guidance reflects its focus on expanding commercial eVTOL operations and building scalable demonstration models. The company had previously forecasted FY25 revenue of about 900 million yuan, but this was revised down to approximately 500 million yuan [1].

Morgan Stanley, an influential investment bank, has also revised its price target for EHang Holdings. The firm lowered its target to $26.00 from $30.00, while maintaining an Overweight rating on the stock [2]. The investment bank cited reduced volume forecasts for 2025 and 2026, reflecting the company's revised revenue guidance. Despite the downward revision, Morgan Stanley expects EHang to reach net profit breakeven in 2026.

Despite the challenging quarter, EHang has reported several positive developments. The company secured a purchase order for 50 units of its EH216-S aircraft from Guizhou Scenic Tourism Development Co., Ltd., and an order for 41 units from Jilin Aerospace Industry Development Investment Co. EHang also formed a strategic partnership with Reignwood Aviation Group to deploy its aircraft across key tourism destinations in China [2].

Analysts remain cautiously optimistic about EHang's growth potential. While the stock has declined significantly, the consensus rating is "Outperform" with a 48.07% upside forecast. The GF Value estimate suggests a significant undervaluation, with a potential upside of 762.56% [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UI0NB:0-ehang-tumbles-on-fy-revenue-forecast-cut/
[2] https://www.investing.com/news/analyst-ratings/morgan-stanley-lowers-ehang-stock-price-target-to-26-on-reduced-volume-forecast-93CH-4210622