LILM - Why Lilium Stock Fell This Week
Shares of aerospace start-up Lilium (NASDAQ: LILM) fell as much as 13% for the week, according to data provided by S&P Global Market Intelligence , after a rival warned that regulatory approval for its so-called "flying car" aircraft would take longer than it had hoped. This is a brand-new industry, and no company is likely to get a free pass, causing concerns about Lilium's somewhat fragile balance sheet.
Lilium is one of several companies working to design and roll out electric-powered vertical takeoff and landing (eVTOL) aircraft. These planes would not replace the jumbo jets that take us across the oceans today, but rather would fill jobs currently performed by helicopters and automobiles transporting a small number of passengers around a region.
There's great potential for the technology, and a number of major airlines have partnered with various eVTOL vendors to try to commercialize the technology, but also at great risk. Investors got a reminder of the risk when Joby Aviation , one of Lilium's rivals, said that Federal Aviation Administration certification would not occur until late 2024, later than the company had originally hoped.
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Why Lilium Stock Fell This Week