Is Ehang a Real Company? Stock Plummets, Class Action Lawsuit Filed After Report Claims Ehang’s Value Was Falsely Inflated

Zacc Dukowitz

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A recent report from Wolfpack Research, a research group and short seller of stocks, has slammed passenger drone company Ehang, accusing the company of fraud.

The report is scathing, and dramatically entitled “Ehang: A Stock Promotion Destined to Crash and Burn.”

On the same day it was released, Ehang’s shares plummeted, losing 63% of their value. (Shares bounced back up by 35% the next day, to $62/share, but were still half of the previous week’s all-time-high of almost $130/share.)


Big picture, the report says that Ehang:

  • Doesn’t have nearly the amount of revenue it has reported
  • Doesn’t have the sophisticated autonomous passenger drone technology it claims to have developed
  • Hasn’t actually secured any of the regulatory approvals for commercial autonomous passenger drones that it claims to have secured

Read today's post to get the details about Wolfpack Research's claims, Ehang's reply, and to learn what all of this might mean for the future of passenger drones.

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@AshleyS I didn't see any claims that Ehang has faked videos in the Wolfpack report (and we didn't make any claims about Ehang videos in our reporting either).

The claims were that Ehang 1) Doesn't actually have the revenue it has reported; 2) Doesn't have the level of technology is has claimed to have; and 3) Doesn't have the commercial regulatory approvals it has claimed to have in the US, Canada, and China.

I was skeptical too given the interest a short seller would have in tearing down a company when it stands to profit, but the report and evidence Wolfpack compiled is pretty compelling. It's telling that Ehang didn't deny any of the accusations in the press release it issued in response—in fact, Ehang included a statement that said it wasn't making any claims about its value in the release, which doesn't seem like something you would do if you were innocent.

Let me know your thoughts if you read our article or the report, would be curious to hear what you think.

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  • 3 months later...

Do you know that EHang has been consistently sued on claims such as Fraud and Breach of Contract in United States? This probably gives you an idea on what kind of a company it is:

In late 2017 EHang was sued by KW Redwood Shores at San Mateo Superior Court (Case No. 17CIV03495), the Complaints were: 1. Breach of Lease, 2. Fraudulent Transfer – Actual Fraud, 3. Fraudulent Transfer – Constructive Fraud. 

In early 2020, EHang and its CEO Huazhi Hu, CFO Shang-wen Hsiao, Richard Jian Liu and CMO Derrick Yifang Xiong were sued by their ex US General Manager in US Federal Court Northern District of California San Jose Division (Case No. 20-cv-00569-BLF). In early 2021 the court granted the claims against all defendants on 1. Breach of Contract. 2. Fraud, 3. Unpaid wages, Penalties and Interests.

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