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Impact of Legislative Changes: Recent legislative changes in the National Defense Authorization Act (NDAA) are putting pressure on eVTOL stocks, including Joby Aviation, Archer Aviation, EHang, and Vertical Aerospace, due to proposed restrictions on military helicopter operations.

Safety Concerns Raised: Following a fatal helicopter crash in Washington, D.C., senators are advocating for stricter aviation safety rules, including the requirement for military helicopters to use the Automatic Dependent Surveillance Broadcast (ADS-B) system, which the military opposes for security reasons.

Potential Regulatory Complications: The proposed changes could complicate aircraft certification for eVTOLs, particularly those operated autonomously, as they already utilize ADS-B systems.

Market Reactions and Future Plans: Joby Aviation plans to double its manufacturing output in the U.S., while Vertical Aerospace is viewed positively by analysts as a clean and undervalued eVTOL investment.

Market Growth and EHang's Position: The global Urban Air Mobility market is projected to grow from $4.6 billion in 2024 to $41.5 billion by 2035, with EHang Holdings leading the way as the first company to receive full certification for its EH216-S autonomous air taxi in late 2023.

Financial Performance and Stock Volatility: EHang's stock has seen significant volatility, trading at approximately $14.02 after a peak of $29.76, with a recent Q3 2025 earnings report showing a revenue dip but maintaining a strong gross margin of 60.8%.

Legal Settlement and Strategic Focus: EHang agreed to a $1.985 million settlement for a class action lawsuit alleging misleading statements about its business, allowing the company to focus on operations and growth rather than legal battles.

Analyst Outlook and Future Potential: Analysts maintain a "Strong Buy" rating for EHang, with an average price target of $24.98, indicating a potential upside of nearly 78% as the company aims for mass commercialization of its VT35 aircraft in 2026.