MUNICH - Lilium N.V. (NASDAQ: LILM), an electric aircraft manufacturer, has completed a major test of its electric jet propulsion unit, marking a significant step toward its goal of zero-emission regional air mobility. The test, which involved bringing the electric engines to maximum thrust on a test bench, was conducted at the company's headquarters near Munich, according to a press release statement.
The successful testing of the propulsion unit, which includes two engines within a mounting system, is part of the company's safety verification process for the Lilium Jet. Lilium's Chief Technology Officer, Stephen Vellacott, stated that the achievement underscores Lilium's position as a leader in developing electric jet propulsion technology. The company has invested heavily in this technology and secured extensive intellectual property rights.
The engines for the propulsion system were developed in collaboration with industry partners, including Denso and Honeywell (NASDAQ:HON) for the e-motor, Aeronamic for the compressor fan, and SKF for the electric motor bearings. The propulsion assembly line near Munich is gearing up for initial series production of the propulsion units, which will be used for ground testing and integration into the first flight aircraft.
The recent completion of the first propulsion mounting system by aerostructures supplier Aernnova and the delivery of the first set of servo-actuators by Sener are also part of the preparatory steps toward production. These actuators enable the propulsion units to be rotated, facilitating the transition from vertical to horizontal flight modes.
Daniel Wiegand, Lilium Co-Founder and Chief Engineer for Innovation & Future Programs, expressed that reaching this milestone brings the company closer to its first manned flight and commercial service entry. Lilium's vision is to create a sustainable and accessible high-speed transportation system using the all-electric Lilium Jet, which promises low noise, high performance, and zero operating emissions.
This development comes as Lilium progresses towards its targeted regulatory and program development milestones, with the aim of transforming regional aviation with its electric jet technology. The company has garnered sales and indications of interest across various global markets, including Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia.
The information in this article is based on a press release statement from Lilium N.V.
In other recent news, Lilium N.V. has been the subject of several significant developments. The aircraft manufacturer reported a 53% surge in its Q1/24 cash burn, reaching €94.7 million due to payments made to aerospace suppliers. The company's management has revised its cash burn forecast for the first half of 2024 to approximately €190 million.
Lilium successfully raised a total of $114 million in funding, which will be used to fund the company's operations and upcoming first manned flight test. Canaccord Genuity maintained its Buy rating on Lilium's shares, revising the stock price target to $2.00.
In a strategic move, Lilium established its Asia-Pacific regional headquarters in China's Bao'an District, indicating a plan to penetrate the Chinese and Asia-Pacific markets. Additionally, in a significant step towards sustainable air travel, Lilium partnered with UrbanV and Aéroports de la Côte d’Azur to establish a network of vertiports across the French Riviera by 2026. These are among the recent developments for Lilium N.V.
InvestingPro Insights
As Lilium N.V. (NASDAQ: LILM) advances its electric jet propulsion technology, investors are closely monitoring the company's financials and stock performance. According to InvestingPro data, Lilium's Market Cap stands at $471.18M, reflecting its current valuation in the market. Despite the technical advancements, the company's financial metrics show a Price / Book ratio of 11.86 as of the last twelve months ending Q4 2023, indicating a high valuation relative to the company's net asset value. Moreover, the company's stock price has experienced significant volatility, with a 1 Month Price Total Return of -14.27% and a 6 Month Price Total Return of -40.7%, as of the most recent data.
Investors should also consider the InvestingPro Tips which highlight that Lilium is currently trading at a high Price / Book multiple and does not pay a dividend to shareholders. Additionally, the company's short term obligations exceed its liquid assets, and analysts do not anticipate profitability for the current year. These factors could be crucial for investors assessing the risk and potential of Lilium's stock.
For those interested in a deeper dive into Lilium's financial health and stock potential, InvestingPro offers additional tips and insights. There are 15 more InvestingPro Tips available for Lilium, which can be accessed through the InvestingPro platform. To enrich your investing strategy and gain access to these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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