Flying taxi maker Lilium (NASDAQ:LILM) received European Union approval for the design of its proposed vehicle.
This Design Organization Approval from the European Union Aviation Safety Agency (EASA) will let Lilium build and operate electric vertical take-off and landing (eVTOL) craft under Part 21 of the agency’s standards.
LILM stock rose 5.5% on the news and another 3.5% in pre-market trading this morning — shares opened in New York at 90 cents each, a market capitalization of about $470 million.
Lilium Up and Away
Lilium also signed a memorandum of understanding with CITIC Offshore Helicopter, China’s provider of helicopter pilots. This will allow it to start work on an eVTOL service in the “Greater Bay” area between Hong Kong and Guangdong.
Lilium was founded in 2015 by four German engineers. It came public in September 2021 through a special purpose acquisition company (SPAC) called Qell. The deal netted $584 million in capital.
This month, Lilium signed Michelin (OTCMKTS:MGDDY) to make tires for its electric VTOL and InoBat to make its batteries.
Lilium’s craft has tiny propellers mounted on wings, with engines integrated into the wing flaps that rotate from horizontal to vertical. This lets it take off and land like a helicopter while looking like an airplane in flight. The latest model can seat up to six people.
Lilium is part of a crowded eVTOL market. It includes Archer Aviation (NASDAQ:ACHR), JOBY Aviation (NASDAQ:JOBY) and privately held Alef Aeronautics in the U.S. There are also many Chinese start-ups, including EHang (NASDAQ:EH) and a unit of XPeng (NASDAQ:XPEV), best known for its electric cars.
Many eVTOL companies are hoping to start offering service in 2025, with routine service expected in 2028. Getting into the air requires approval from a variety of national regulators. This is why Lilium’s European success is being celebrated.
LILM Stock: What Happens Next?
The race is on to get these craft in the air, making money by the middle of this decade. It’s only then that long-term investors will be able to evaluate the players.
Meanwhile, speculators are welcome to place their bets.
As of this writing, Dana Blankenhorn 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.
