The electric vehicle (EV) boom has come to define the market in 2020 and 2021. Innovation rollouts from companies such as Tesla (NASDAQ:TSLA) and Lucid Motors (NASDAQ:LCID) have investors and consumers watching excitedly as the future of travel continues to unfold. For public companies whose devices operate off the ground, though, taking off may be slightly more complicated. Germany-based Lilium (NASDAQ:LILM), an early leader in the field of sustainable air mobility, has just joined the ranks of EV producers to go public. So far, LILM stock’s debut has been turbulent.
What Happened With LILM Stock
Like many others in its field, Lilium made its public debut by way of merging with a SPAC. On Sept. 10, it was announced that shareholders of Qell Acquisition, Lilium’s blank-check partner, had voted overwhelmingly to approve the business combination.
Today marked LILM stock’s first official day of trading on the Nasdaq. Although share prices were quick to rise, they began to decline almost as rapidly. Since midday, though, despite its fair share of turbulence, the stock has enjoyed a late rally and closed up 2.53%.
For a SPAC making its market debut, this isn’t a bad first day of trading. It’s a promising development for Quell shareholders, more than 98% of whom voted in favor of the acquisition.
Why It Matters
Despite today’s late rally, this is still the first day of trading for LILM stock. While the EV boom isn’t slowing down anytime soon, the companies who are part of it can face challenges when they try to go public. Lucid Motors, a fellow EV producer who came public through a SPAC has experienced quite a bit of volatility since its debut in August 2021, although, like LILM stock, its shares are up today.
The market for electric air vehicles is one with plenty of opportunity. Lilium’s project pipeline includes a battery-powered aircraft with the ability to both take off and land vertically. Such technology could transform the ways in which we fly and help eliminate the air travel loops between major airports.
What’s Next for LILM Stock
For investors looking for opportunities within the ever-growing field of EV production, Lilium is certainly worth watching. While most companies need to establish themselves as viable players on public markets, there is no immediate reason to suspect that LILM stock will not do well as its products continue to develop and its market continues to grow.
Any company whose products are still in development is worth watching closely as they near market-ready status. It’s also worth noting that like Lucid, Lilium has the potential to garner public fascination due to its innovative and futuristic products.
Now that LILM stock has been cleared for takeoff, there is little to stop it from soaring to new heights. Investors would be wise to watch.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.