Core Viewpoint - The electric vertical takeoff and landing (eVTOL) manufacturer EHang Intelligent (EH.US) has launched its second main model, the VT35, which has a range of at least 200 kilometers, complementing its existing short-range model EH216-S with a range of approximately 30 kilometers [3][5]. Group 1: Product Development - EHang has introduced the VT35 to attract investor attention, with the model's launch event held in Hefei, where the company plans to establish a production base [3][4]. - The VT35 is designed for intercity, cross-sea, and mountainous travel, with an initial price set at 6.5 million yuan (approximately 1 million USD) [7]. - The Civil Aviation Administration of China (CAAC) has accepted the type certification application for the VT35, initiating the airworthiness approval process [7]. Group 2: Financial Performance - EHang's stock price rose by 4.8% on the announcement day, but the stock has been volatile, remaining within a range of 10 to 26 USD over the past two years [6]. - The company significantly lowered its revenue guidance for 2025 from 90 million yuan to 50 million yuan (approximately 7 million USD), citing adjustments to delivery schedules [6]. - In Q2, EHang reported a 44% year-over-year revenue increase to 147 million yuan, delivering 68 units of the EH216 model, but only had 13 enterprise customers, indicating a high reliance on government support [8]. Group 3: Government Support and Partnerships - The Hefei municipal government has become a key supporter of EHang, committing 500 million yuan in funding [5][8]. - EHang has partnered with local automotive manufacturer Jiangqi Group to produce the VT35, further solidifying its support base in Hefei [4][8]. - The company has received orders from Hefei's government platform, indicating strong local government backing for its operations [7]. Group 4: Market Position and Valuation - EHang's current price-to-book (P/B) ratio stands at 9.8, positioned between Joby Aviation (17) and Archer Aviation (3.91), both of which have not yet generated revenue [8]. - Despite being a leader in the global eVTOL market due to its airworthiness certification from China, EHang faces challenges ahead as indicated by its reduced revenue expectations [8].