Why Lilium Stock Is Down Big Today
Aerospace start-up Lilium (NASDAQ: LILM) is returning to the markets for yet more funding, and investors are worried about dilution. Shares of Lilium dropped more than 20% on Friday after the company announced it has raised $192 million in additional capital.
Lilium is one of a number of companies racing to bring what are known as electric vertical takeoff and landing (eVTOL) aircraft to market. The so-called "flying taxis" are about the size of a van or small truck, and offer the promise to one day ferry passengers over city traffic or funnel traffic to airlines from outer suburbs.
There is a lot of potential here, but also a lot of competition. Start-ups including Joby Aviation, Archer Aviation, and Vertical Aerospace are advancing their own designs, as are established manufacturers including Embraer.
Source Fool.com
