IB Net Payout Yields Model

Lilium: Future Of Regional Transportation

  • Lilium and Qell Acquisition completed the SPAC business combination last week.
  • The SPAC was hit with 65% of SPAC shareholders redeeming shares, but the transaction still raised $584 million due to a large PIPE at $10.
  • The stock is compelling below the $10 PIPE price for shareholders willing to ride the high volatility in the eVTOL space.
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The recent closing of the SPAC deal between Lilium GmbH (LILM) and Qell Acquisition Corp. enters another public company into the electric air mobility space. The company is unique in its focus on developing an all-electric jet targeted on regional transportation, as opposed to the air taxi focus of other competitors. My investment thesis is Neutral on the stock with the rally back to nearly $11, following the closure of the deal with other peer stocks trading below $10.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Sept. 23

MS goes full bull on $JOBY. Are they right because this has huge implications for $LILM as well?

-Joby Aviation (NYSE:JOBY) pops after Morgan Stanley says the sky is the limit for shares with the company a potential disruptor in a highly regulated market, although a wide range of outcomes is noted as a reality.
-Analyst Kristine Liwag points to the long-term potentially disruptive nature of eVTOL aircraft in supporting the firm's Bull case valuation range of $45 to $60 per share. The base case range of $5 to $25 reflects execution risks and a highly regulated civil aviation industry. Adding it all up, Morgan Stanley believes the risk reward skews to the upside and initiates the stock with an Overweight rating.



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