Stock market today: Dow in fresh record close as Powell signals rate cut incoming
MUNICH - Lilium (NASDAQ: LILM), the electric aircraft manufacturer known for its work in Regional Air Mobility (RAM), has announced the successful completion of the first phase of integration testing for the Lilium Jet's electrical power system. This significant step, conducted at the company's specialized laboratory near Munich, moves the Lilium Jet closer to obtaining flight conditions approval and type-certification.
The newly established electrical power system lab at Lilium's headquarters is designed to replicate the Lilium Jet's powertrain within a controlled test setting. It encompasses low voltage systems for avionics and cabin features, energy isolation units for safety, and a functional charging station. Custom software allows engineers to simulate flight profiles, conduct tests, and collect real-time data, which will be used to demonstrate the aircraft's safety and compliance with the European Union Aviation Safety Agency's (EASA) SC-VTOL regulations.
Stephen Vellacott, Chief Technology Officer at Lilium, underscored the lab's role in ensuring that the Lilium Jet meets strict aviation safety and reliability standards. The lab's capacity to test flights, charging, and simulate failure scenarios is crucial for the aircraft's journey from initial flight to certification and eventual product launch.
The collaboration with Italian supplier EN4 and the use of technologies from NI (formerly National Instruments (NASDAQ:NATI)) has been pivotal in creating the test rig. Gianluca Franchi, Business Development Director at EN4, highlighted the test rig as a long-term asset for supporting the Lilium Jet through certification and beyond.
In addition to the lab's progress, Lilium continues the production of the first Lilium Jets for the type-certification program. The first jet is dedicated to ground testing, while the second will be used for the first manned flight. Lilium's Phoenix test aircraft have already conducted extensive flight testing in Spain, achieving full transition from vertical to horizontal flight.
This development is part of Lilium's broader efforts to provide a sustainable, high-speed transportation solution using the all-electric Lilium Jet. The company has stated its commitment to decarbonizing air travel and has engaged with various sectors to promote its vision.
The information provided is based on a press release statement from Lilium.
In other recent news, electric aircraft manufacturer Lilium N.V. has been making significant strides. The company has partnered with Groupe ADP to develop a network of vertiports, aiming to support the commercial operations of the Lilium Jet, an all-electric vertical take-off and landing aircraft, set to begin in 2026. This partnership is expected to enhance the Lilium network in France and establish Paris as a key hub for regional electric aviation.
Lilium has also entered into a strategic partnership with the General Authority of Civil Aviation of Saudi Arabia. This collaboration aims to integrate electric Vertical Take-Off and Landing aircraft into Saudi Arabia's transportation and airspace systems by 2026.
In terms of financial performance, Groupe ADP managed nearly 336.4 million passengers internationally in 2023, with group revenue reaching €5,495 million and net income at €631 million. On the other hand, Lilium's Q1/24 cash burn increased by 53% due to payments made to aerospace suppliers, reaching €94.7 million. Despite this, Lilium secured $114 million in funding to support its operations and upcoming first manned flight test.
According to Canaccord Genuity, Lilium's shares maintain a Buy rating, with the stock price target revised to $2.00. These are the recent developments for Lilium N.V. and Groupe ADP.
InvestingPro Insights
As Lilium (NASDAQ: LILM) progresses towards its goal of revolutionizing Regional Air Mobility with its all-electric Lilium Jet, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Lilium currently holds a market capitalization of approximately $477.89 million. Despite the technological advancements, the company faces financial challenges, as reflected in its negative price-to-earnings (P/E) ratio of -0.13 and a more adjusted P/E ratio for the last twelve months as of Q4 2023 of -1.11. This suggests that the company is not currently generating profits relative to its share price.
Furthermore, the company's stock price has experienced significant volatility, with a 1-month price total return of -19.75% and a 3-month price total return of -31.94%, indicating a downward trend in the recent period. This volatility is also captured by an InvestingPro Tip, which notes that Lilium's stock price movements are quite volatile. The company's financial position is further highlighted by another InvestingPro Tip, revealing that Lilium is quickly burning through cash, which could be a point of concern for investors considering the capital-intensive nature of the aerospace industry.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, providing insights into Lilium's cash position, gross profit margins, and other key financial metrics. It's worth noting that analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month. With 14 InvestingPro Tips in total, potential investors can gain a more comprehensive understanding of the risks and opportunities associated with Lilium's stock by visiting https://www.investing.com/pro/LILM.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.