It’s a mixed day in the markets as we near quarter-end, but there’s no mistaking the move in Lilium NV (NASDAQ:LILM). Shares of LILM stock are bursting higher, up about 25% on Wednesday.
Indeed, LILM is having a strong week, with shares up more than 20% for the past five days. While today’s rally comes on strong volume, it’s hardly record numbers.
With more than 10 million shares changing hands as of this writing, today marks the highest reading in several weeks. However, several sessions in May also eclipsed the 10 million share mark. Its highest one-day total this year came on May 2, with trading volume of 33.5 million shares.
LILM is trending higher alongside Archer Aviation (NYSE:ACHR) and Joby Aviation (NYSE:JOBY). In fact, the latter is up more than 40% as of this writing.
While Lilium and Archer are rallying nicely on the day, they pale in comparison to Joby when it comes to overall valuation. Joby Aviation sports a market capitalization of almost $6 billion. Meanwhile, Lilium and Archer weigh in at around $670 million and $960 million, respectively.
Regardless, these stocks are enjoying an impressive rally on the day, as “Joby has received a Special Airworthiness Certificate for the first aircraft built at its Pilot Production Line in Marina, CA, allowing flight testing to begin.” The certificate was issued by the Federal Aviation Administration (FAA).
Per the news release:
“Joby has been flying full size aircraft since 2017 and its pre-production prototype aircraft have flown more than 30,000 miles since 2019. Today’s production prototype builds on that experience and marks another important step toward achieving FAA certification and production at scale.”
What Does This Mean for LILM Stock Now?
For those unfamiliar with the company, “Lilium is developing sustainable, high-speed air mobility through its electric vertical take-off and landing aircraft, vertiports and digital service.”
With today’s rally, it’s clear that LILM stock is rallying in sympathy with Joby’s news. However, it’s a positive step for the entire industry. Indeed, Joby Aviation’s news is a huge boost to investor sentiment surrounding this space, even if there are still many steps along the way.
It’s also worth mentioning that Lilium has recently received some good news from the FAA as well.
On June 26, the company announced that it had “received the Federal Aviation Administration (FAA) G-1 Certification Basis necessary for type certificate validation of its Lilium Jet by the FAA.” At the time, the company also reminded investors that the European Union Aviation Safety Agency “issued its certification basis for the Lilium Jet” back in 2020.
As one might expect, it hasn’t been an easy or a smooth ride for LILM stock. Shares declined more than 70% amid a 12-week losing streak earlier this year. From the all-time high to this year’s low, the stock has tumbled more than 95%. However, it has been on a tear since bottoming at 37 cents on May 1.
LILM stock has rallied in six of the last nine weeks, climbing more than 300% in that span. From here, investors are hoping the stock can maintain momentum and continue to gain altitude.
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On the date of publication, Bret Kenwell did not hold (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.
