Why Lilium Stock Plummeted by 21% Today

Financing Issues - Lilium announced that it would not receive a loan guarantee from the German federal government, leading to a significant drop in its stock price by over 21% [1] - The company revealed in a regulatory filing that the German parliament's budget committee would not approve a guarantee for 50 million euros ($54 million) of a 100 million-euro ($109 million) convertible bond issue [2] - Lilium is currently negotiating with Bavaria to secure at least 50 million euros for the bond issue [2] Product Development - Lilium aims to commercialize its Lilium Jet, an electric vertical takeoff and landing (eVTOL) aircraft designed for passenger and cargo transport [3] - The company recently completed the first systems power-on of the Lilium Jet during live testing, confirming that the aircraft is being built according to its platform design and that the flight systems are functioning correctly [3] Market Potential and Speculation - The Lilium Jet has the potential to revolutionize mobility, but it also faces the risk of being a speculative investment that may not achieve widespread adoption [3] - Continued struggles with financing could make Lilium less attractive to investors [3]