Shares of Chinese electric vertical take-off and landing (eVTOL) company EHang Holdings (EH 4.13%) crashed to Earth on Tuesday, falling 23% through 12:10 p.m. ET after apparently missing analyst forecasts for sales by a wide margin this morning.
According to Yahoo! Finance data, Wall Street analysts expected EHang to report $53.9 million in sales for its first fiscal quarter of 2026. When the news actually came out, though, it turned out EHang had booked a mere $3.7 million in sales -- while losses grew significantly.
Image source: Getty Images.
EHang Q1 earnings
Revenue calculated in Chinese renminbi actually declined slightly year over year as EHang booked only four sales of its EH216 eVTOL aircraft -- down from 11 units sold in the year-ago quarter, and way down from the 61 units sold in fiscal Q4 2025 (plus five VT35s sold last quarter as well).
Gross profit margin did tick higher, up 10 basis points to 62.5% -- but that minuscule improvement wasn't enough to offset a 94% sequential decline in units sold!
NASDAQ: EH
Key Data Points
What's next for EHang stock?
So what's going on here? Have buyers simply fallen out of love with EHang's products?
Perhaps. It's also possible, though, that Chinese eVTOL shoppers may be delaying purchase of the EH216 model in anticipation of the more advanced VT35, which is still in development and awaiting full certification. Described as a "long-range lift-and-cruise eVTOL aircraft," the new model should have more use cases and attract a wider range of buyers once it's certified.
While Q1's sales number certainly came as a shock, if what we're looking at here is a simple case of pent-up demand, there's still hope for EHang to pull out of its tailspin yet.
