Drone Maker Ehang (EH) Up 7% as FAA Allows Small Drones to Fly Over People and at Night

Shares of Ehang Holdings (NASDAQ: EH) are up 6.8% in pre-open trade Tuesday after the Federal Aviation Administration (FAA) decided to allow small drones to fly over people and at night in the United States.

FAA said it addressed security concerns in this space by requesting remote identification technology to allow their identification from the ground.

“The new rules make way for the further integration of drones into our airspace by addressing safety and security concerns,” FAA Administrator Steve Dickson said.

“They get us closer to the day when we will more routinely see drone operations such as the delivery of packages.”

The decision will enter into force 60 days after official publication. On the other hand, drone makers will have 18 months to start manufacturing drones with Remote ID, in addition to a year available to operators to obtain Remote ID.

As a result, drones that are not broadcasting locations may be banned by 2023. All drones weighing above 0.55 pounds (0.25kg) will be required to have their own Remote ID.

“We are reviewing the FAA’s new rule on remote identification, which comes into effect in roughly 30 months. There is no immediate impact on Skydio customers. We are working closely with the FAA and taking steps to ensure that our current and future products will be in compliance with the new framework,” drone maker Skydio said in the statement.

Ehang’s drones are used in China for emergency response and survey missions. The company plans to start domestic roll-outs next year.

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