18.01.2022
Lilium is a German mobility startup which was founded in Munich. They are focused on developing the first air taxi for commercial use.
Their vision is to introduce a new and sustainable way of traveling. With this big mission in mind, Lilium just recently entered the US-Technology stock market Nasdaq. Lilium was able enter that stock market by merging with Quell. The only purpose of this so-called SPAC (special purpose acquisition company) is to make this entry possible.
What is Liliums purpose?
Experts of the Fraunhofer Institute belief that air taxis have what it takes to revolutionize the urban mobility. They are able to relief rail and car traffic in densely populated areas, they are also quieter and more environmentally friendly than helicopters, faster than cars and can connect airports to railway stations in a shorter time horizon. With all these unused opportunities Lilium came to life. They even got high renowned industry experts such as Ex- Airbus-CEO Tom Enders to join the director’s board.
Lilium is currently working on an electric operated seven-seater jet. They expect market launch in roughly three years. This jet is supposed to reduce travel time in comparison to cars and trains through its special take off technology. With this feature Lilium tries to differentiate their company to other competitors.
Lilium has distinct goals which they want to reach in a given time horizon. They plan to generate revenues of five million US dollars per jet in the year 2026. A year later, nearly $5. 9 billion in sales worldwide are targeted, as documents from the Capital Markets Day in early August show. The manufacturer is the first German air taxi startup which competes for international investors.
Funding
After the launch of the stock market Lilium had difficulties to gain as much funding as expected. They calculated to generate capital in the range of 830 million dollar but only got 580 million instead. Even worse than that, two-thirds of the Quell investors refunded their shares which is not a good sign of reputation.
Lilium refers to the current market situation as a possible explanation for its poor performance regarding the stock market goal. The company also explained that this would not have any influence on their future plans. With the gained 580 million as funding Lilium CEO Daniel Wiegand tries to reach the goal of becoming commercialized at the year 2024.
Problems
Funding is not the only issue Lilium is currently facing. The seven-seater jet is by now just a concept and is not yet realized. Apparently, the jet prototype has been in the air for just 90 seconds so far. Many experts belief that the range claims regarding the jet are just not technically possible. In order for approval to be successful in the year 2024, the serial version would have to make its first flight towards the end of 2022.
Overall, Lilium still has a long way to go with many difficulties ahead, but if they are able to deliver on what they are promising they will most certainly have a drastic impact on the mobility sector.
Written by: Antonius Eich
Sources: Lilium - Website; Forbes - “Lilium’s New Course”; Tagesschau - “Deutsches Flugtaxi-Start-up”; Finance Magazin - “Spac-Börsengang von Lilium enttäuscht”