JPMorgan analyst Beatrice Lam downgraded EHang Holdings to Underweight from Neutral. The bank slashed its price target for the stock to $4.40 from $9.70.
Significant regulatory setbacks in China drove the downgrade. Regulators have shifted commercialization goals for passenger-carrying electric vertical takeoff and landing (eVTOL) aircraft since late 2025.
A nationwide suspension of most general aviation activities followed a June 26 accident in Beijing. This suspension has further delayed passenger deployment timelines.
JPMorgan cut its revenue forecasts for EHang by 55% for 2026. The bank reduced 2027 revenue estimates by 66% and 2028 forecasts by 75%.
The firm now projects continued net losses through 2028. Analysts believe EHang has reverted from a commercialization story back to a certification one.