eVTOL player Lilium plunges amid lock-up expiration, short report from Iceberg Research
Lilium (NASDAQ:LILM), an electric vertical takeoff and landing company, dropped 25% amid an Iceberg Research new short report.
Iceberg Research expresses doubts about Lilium's claims that its vehicle can fly 155 miles and the report estimates the company has about 18 months before the company runs out of cash.
The stock was down before the Iceberg Research report came out as Iceberg notes that it estimates around 177 million Lilium shares (~68% of the companyâs total outstanding shares) worth ~$652m were unlocked for sale on Monday.
The 180-day-lock-up period was set to expire after Lilium went public through a de-spac and began trading on Sept. 15.
Lilium didn't immediately respond to Seeking Alpha email request for comment.
Lilium, which counts Palantir (NYSE:PLTR) and Honeywell (NASDAQ:HON) as investors and partners, is in a race with other aviation startups to deploy battery-powered aircraft that can take off and land vertically, offering a new way for travelers to beat urban traffic and hop between cities.
Lilium is part of a growing list of electric vertical takeoff and lift companies that have gone public through SPAC deals including Joby Aviation (NYSE:JOBY), Archer Aviation (NYSE:ACHR) and Vertical Aerospace (NYSE:EVTL).
Last month, SPAC-heavy eVTOL industry looks to take flight.