EHang Holdings Ltd (Nasdaq: EH) saw its stock surge 6.94% in Sunday's trading session following a game-changing announcement for the Urban Air Mobility (UAM) industry. The company revealed that its subsidiary, Guangdong EHang General Aviation Co., Ltd., and its joint venture, Hefei HeYi Aviation Co., Ltd., have been granted the first batch of Air Operator Certificates (OCs) for civil human-carrying pilotless aerial vehicles by the Civil Aviation Administration of China (CAAC).

This milestone marks a significant leap forward in the commercialization of EHang's eVTOL (electric Vertical Take-Off and Landing) aircraft. The OCs pave the way for the company to offer flight services for low-altitude tourism, urban sightseeing, and various commercial human-carrying flights in Guangzhou and Hefei. EHang plans to expand these services to include urban commuting in the future, subject to operational conditions and compliance with regulations.

The achievement is particularly noteworthy as it makes EHang the world's first eVTOL company to secure the full suite of regulatory certifications, including the type certificate, standard airworthiness certificate, production certificate, and now the air operator certificate. This comprehensive regulatory approval positions EHang at the forefront of the emerging UAM market and significantly enhances its potential for widespread adoption of its pilotless human-carrying flight services.

Investors appear to be reacting positively to the news, recognizing the potential for EHang to capitalize on the growing low-altitude economy in China. The company's ability to offer commercial flight services could open up new revenue streams and accelerate its path to profitability. As EHang continues to expand its operation sites across China and collaborates with partners to establish more low-altitude transportation operation centers, the market seems optimistic about the company's future growth prospects in the rapidly evolving UAM industry.