Lilium Jet debuts in the U.S. with Houston showcase

HOUSTON - Lilium (NASDAQ: LILM), an electric aircraft manufacturer, is presenting its Lilium Jet, a fully electric jet with vertical takeoff and landing capabilities, in the U.S. for the first time today. The company, known for its work in Regional Air Mobility (RAM), is introducing the jet as a new option for regional travel around Houston.

The Lilium Jet is designed for efficiency and speed, with an anticipated range of 110 miles, which could enable connections between Houston Hobby Airport, Galveston, Houston Spaceport, College Station, and other locations. Galaxy FBO's facilities in the Houston area will serve as critical infrastructure for Lilium Jet operations.

EMCJET, a Houston-based aircraft brokerage, has secured production slots from Lilium as part of a partnership agreement, with customer deliveries expected to start in 2026. The company highlights the spacious cabin and luxurious finishes of the Lilium Jet, emphasizing its vertical takeoff and landing capability for safe and sustainable travel.

In collaboration with the Greater Houston Partnership, a local chamber of commerce, Lilium and Galaxy FBO will engage in discussions with policymakers and industry leaders about the impact of electric aviation on regional travel.

Lilium is also preparing for the first piloted flight of the Lilium Jet in early 2025 and will display the aircraft at the 2024 NBAA Business Aviation Convention & Exhibition in Las Vegas next month. The company's efforts to secure FAA validation for the Lilium Jet are ongoing.

This news article is based on a press release statement.

In other recent news, electric aircraft manufacturer Lilium N.V. has been making substantial strides. The company has confirmed its delivery schedule for the first customer deliveries of its Lilium Jet in 2026, following a recent program review. The first manned flight of its Lilium Jet MSN 2 is now slated for early 2025. Lilium has also successfully completed the first phase of integration testing for the Lilium Jet's electrical power system, a crucial step towards obtaining flight conditions approval and type-certification.

In terms of strategic partnerships, Lilium has teamed up with Groupe ADP to develop a network of vertiports, enhancing the Lilium network in France and establishing Paris as a key hub for regional electric aviation. A collaboration with the General Authority of Civil Aviation of Saudi Arabia aims to integrate electric Vertical Take-Off and Landing aircraft into Saudi Arabia's transportation and airspace systems by 2026.

Financially, Lilium's Q1/24 cash burn increased by 53% due to payments made to aerospace suppliers, reaching €94.7 million. Despite this, the company 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. These are the latest developments for Lilium.

InvestingPro Insights

As Lilium (NASDAQ: LILM) showcases its innovative Lilium Jet in the U.S., investors are closely monitoring the company's financial health and market potential. According to InvestingPro data, Lilium has a market capitalization of $447.77 million, reflecting its position in the competitive electric aircraft industry.

InvestingPro Tips highlight a mixed financial landscape for Lilium. The company holds more cash than debt, which is a positive indicator of its ability to fund operations and growth initiatives. However, analysts remain cautious as Lilium is quickly burning through its cash reserves and has not been profitable over the last twelve months. This is underscored by a negative adjusted P/E ratio of -1.04 for the last twelve months as of Q4 2023, indicating that earnings have not kept pace with the company's valuation.

Additionally, the company's stock has experienced significant volatility, with a price that has performed poorly over the last decade and has fallen significantly over the past five years. This volatility is reflected in the price total returns, with a year-to-date decline of 38.05% as of the latest data. Despite these challenges, Lilium's recent efforts to innovate and expand into new markets, such as the Houston area for regional air mobility, may offer future growth opportunities.

For investors seeking a deeper dive into Lilium's financials and future prospects, InvestingPro offers additional tips and metrics, including an analysis of the company's gross profit margins, short-term obligations, and free cash flow yield. To explore these insights and more, visit the dedicated InvestingPro page for Lilium at https://www.investing.com/pro/LILM.

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