EHang is developing an “autonomous” aerial vehicle ridesharing network, with its main vehicle similar in design to a large drone, according to its website.
The stock fell 63% on Tuesday, and was down as much as 12% in pre-market trades on Wednesday before surging as much as 62% in the regular trading session. Wolfpack alleges EHang’s relationship with its primary customer “is a sham” based on recorded phone calls, on-site visits, and behind the scenes photographs.
“Common with a stock promotion, EH has only collected on a fraction of its reported sales since its mid-December 2019 IPO,” Wolfpack said.
EHang is pushing back on the report, call it “deceptive” in a statement and that it “strongly believe that the report contains numerous errors, unsubstantiated statements, and misinterpretation of information.”
Shares of EHang were on a tear prior to Wolfpack’s research report. The stock soared 515% year-to-date before the report. Even at Wednesday’s prices, the stock is still more than 100% year-to-date.