Did the US$1.99 Million Class Action Settlement Just Shift EHang Holdings' (EH) Investment Narrative?

• On October 17, 2025, The Rosen Law Firm announced that the U.S. District Court for the Central District of California approved a proposed US$1,985,000 class action settlement for purchasers of EHang Holdings Limited American Depositary Shares from March 29, 2022, through November 6, 2023.
• This legal settlement process marks a pivotal development in resolving past investor claims and may influence future confidence in EHang's governance and disclosure practices.
• We will now examine how this proposed class action settlement could affect EHang’s investment narrative, especially regarding legal risk management.

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EHang Holdings Investment Narrative Recap

To be a shareholder in EHang Holdings, I believe you need confidence in the company’s leadership of the urban air mobility sector and its ability to commercialize autonomous passenger eVTOLs at scale. The recently approved class action settlement addresses past disclosure concerns, but it does not appear to materially affect the underlying catalyst of regulatory approvals or alter the main risk: that revenue growth may slow in order to strengthen operational and safety standards. EHang’s most recent revenue guidance update, shifting forecasts to RMB 500 million for 2025 from a previously anticipated RMB 900 million, is especially relevant given the backdrop of the settlement. It reinforces how the company is prioritizing operational readiness and safety ahead of aggressive top-line growth, a stance made even more important as it works to establish credibility and trust with investors following the resolution of legal claims. Yet, despite regulatory progress and milestones, the concentration of revenue in China and modest international certifications mean investors should watch for...

Read the full narrative on EHang Holdings (it's free!)

EHang Holdings' narrative projects CN¥2.0 billion revenue and CN¥314.3 million earnings by 2028. This requires 63.4% yearly revenue growth and a CN¥568.1 million earnings increase from CN¥-253.8 million.

Uncover how EHang Holdings' forecasts yield a $23.71 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Fourteen retail investors from the Simply Wall St Community set EHang’s fair value between US$4.95 and US$295.88. While revenue revisions and legal settlements shape opinions, continue exploring other views as expectations for international expansion and certification can significantly influence future outcomes.

Explore 14 other fair value estimates on EHang Holdings - why the stock might be worth less than half the current price!

Build Your Own EHang Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EHang Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free EHang Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EHang Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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