Core Insights - EHang Holdings Ltd. has launched its second major eVTOL model, the VT35, which has a range of up to 200 kilometers, complementing its original EH216-S model with a range of about 30 kilometers [3][10] - The company is currently in a holding pattern, with its stock trading within a defined range since receiving an airworthiness certificate two years ago [2][6] - EHang's revenue guidance for 2025 has been sharply lowered from 900 million yuan ($126 million) to 500 million yuan ($70 million), indicating potential challenges ahead [8][16] Product Development - The VT35 was officially launched in Hefei, with the event described as an "unveiling ceremony," although the aircraft did not actually fly during the event [4][10] - The initial price for the VT35 is set at 6.5 million yuan (just under $1 million) [10] - EHang has received orders for the VT35 from entities connected to the Hefei municipal government, which has become a significant benefactor [12][13] Financial Performance - EHang's revenue rose 44% year-on-year to 147 million yuan in the second quarter, with 68 EH216 models delivered [14] - The company has a healthy gross margin of around 62% and is profitable on an adjusted basis, excluding employee share-based compensation [15] - EHang's cash reserves stood at 1.13 billion yuan at the end of June, indicating a relatively strong financial position [15] Market Position - EHang currently trades at a price-to-book (P/B) ratio of 9.8, which is higher than Archer Aviation's 3.91 but lower than Joby Aviation's 17 [16] - The company is seen as a leader in the global eVTOL market due to its early receipt of a flight certificate from China [16] - Despite its advancements, the sharp downward revision in revenue forecasts suggests ongoing challenges for the company [16]