What happened
EHang Holdings (NASDAQ:EH), an ambitious Chinese company developing autonomous flying taxis, had a gainer in the stock market on Wednesday. Investors cheered news of a new acquisition, sending the stock up 1.4% on a day when stock prices were up 1.4% S&P500 The index entered negative territory and closed almost 1% lower.
So
Before the market opened, EHang announced that it has made a strategic investment in Shenzhen Inx Technology. This company, also based in China, develops solid-state lithium batteries. As part of the investment, the two companies plan to collaborate on the research, development and production of energy products for EHang’s autonomous aircraft.
While EHang was excited about its latest investment, it did not provide financial details.
Inx is a private company founded in 2020 that aims to develop batteries using lithium and solid-state electrolytes to produce power. According to EHang, this results in a remarkable gain in energy density and safety compared to more traditional batteries.
What now
In the press release announcing this move, EHang quoted CEO Huazhi Hu as saying: “Our strategic investment in Inx is aligned with our commitment to greener, low-carbon technologies, and is also part of EHang’s efforts to expand our upstream battery supply to deploy and improve the chain.”
EHang also did not provide estimates on how its involvement with Inx could affect its financial situation.
10 stocks we like better than EHang
If our analyst team has a stock tip, it could be worth listening to. The newsletter they have been publishing for more than ten years, Motley Fool stock advisorhas tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and EHang wasn’t one of them! That’s right: They think these 10 stocks are even better buys.
View the 10 stocks
*Stock Advisor returns September 18, 2023
Eric Volkman has no positions in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.