Will 2020 be the year of drone taxis? I’m going to peg it on ‘unlikely.’
Drone taxi company EHang, which made its debut on the stock market in December 2019 with a public offering price of $12.50 per share, opened on its first trading day of 2020 in the $10 realm.
But $10 might not be too shabby. While EHang stock hit as high as $13.70 per share, it has also dipped as low as $7.84 in the short timespan that it’s been on the public market. That gives the company a market cap of around $331 million.
The company initially filed to raise an ambitious $100 million in an IPO, with reports in spring 2019 suggesting it could raise as much as $400 to $500 million. The company only raised $43 million in its IPO, and investors mostly remain hesitant as the company is unprofitable. Plus, EHang’s revenue declined in 2019 from 2018.