Lilium N.V. (LILM), a transportation company, closed Monday’s regular session at $4.68 after soaring 24.62% during the day. In the premarket, LILM stock further rocketed by 29.63% and was trading at $6.18 at the last check.
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LILM Began Flight Testing
LILM stock started to make headwinds following the announcement that Lilium is set to commence flight testing in Spain. The company said that it had initiated the next phase of its flight testing in Spain via Phoenix 2, the 5th generation technology demonstrator of the company. The company intends to bring further extension in the flight to envelop during the next few months via full transitioning and high-speed flight.
What’s Up in Transportation Industry?
Transportation stocks like LILM are not enjoying the best of times in the last few weeks. They were categorized among the worst-performing stocks during the last couple of weeks. The reason for that is an aggressive increase in the interest rate from Federal Reserves. Alongside, surging inflation is also proving to be disastrous for consumers across the US. As a result, businesses are seeing and rapid decline in demand, which is directly impacting transporting companies as well. Soaring oil prices is also a worrisome issue for transportation companies.
What’s Cooking for LILM?
LILM stock has seen a gigantic fall of 55.28% since its IPO. If the future is providing any hint, it is that the stock is not performing up to the mark. Lilium had missed the deadline for the testing schedule multiple times, leading to investors’ antipathy toward the stock. However, the more recent development of flight testing commencement could provide a wave of fresh air to a stock that has looked in the doldrums since IPO.
Looking ahead, it appears that the efforts of LILM concerning the development of an innovative jet aircraft are bearing fruit, but still, the development would take quite a time. This means that investors should prefer having a long term investment in the stock. Shareholders are also optimistic that the stock would start providing them with solid returns in near future.