"Flying taxi" start-up Lilium (NASDAQ: LILM) has begun testing its prototype in a wind tunnel, a major milestone in the aircraft's development. Shares of the closely followed start-up spiked by more than 20% on the news before falling back some as the day went on.

Lilium is one of a number of companies racing to bring small, van-sized electric vertical take-off and landing (eVTOL) aircraft to market. These aircraft would not replace traditional long-haul aircraft, but could be a way to glide over city traffic or to feed airlines traffic from outer suburbs.

The industry is in its early days, but shows a lot of promise. There is also a lot of competition, including start-ups like Lilium, Joby Aviation, Archer Aviation, and Vertical Aerospace, as well as from established aircraft manufacturers like Embraer.

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Source Fool.com