Why Lilium Stock Just Crashed by 17%

Core Viewpoint - Lilium, a flying electric car company, is raising significant capital through stock sales, but this is leading to substantial shareholder dilution, causing investor concern [5]. Group 1: Capital Raising Activities - Lilium announced plans to sell up to $150 million in stock to a private-equity company, which will resell up to half of these shares [1]. - The company has an order to sell up to 40 eVTOL cars to UrbanLink, which initially boosted investor sentiment and share price [2]. - Lilium is conducting a private share sale of 110 million shares and 110 million warrants, aiming to raise $114 million, with an option to increase the total by 15% [4]. Group 2: Stock Performance and Investor Reaction - Following the announcement of the share sale, Lilium's stock price fell sharply by 17.2% to approximately $0.88 per share due to management's decision to sell more shares at a higher price [2][3]. - The stock closed at $1.06 before the announcement of the private share sale, with the paired share-warrant priced at $1.05 [3][4]. Group 3: Financial Health and Shareholder Concerns - Lilium has a market cap of around $464 million and is burning $288 million annually, which is more than double the amount raised from the secondary stock sale [5]. - The ongoing dilution of shares is a significant concern for investors, as the company continues to raise capital through stock sales [5].