NICE, France - Lilium N.V. (NASDAQ:LILM), an electric vertical take-off and landing (eVTOL) jet developer, along with UrbanV and Aéroports de la Côte d’Azur (ACA), announced a partnership to establish a network of vertiports across the French Riviera, aiming to start operations in 2026. This initiative will connect key destinations including Monaco, Nice, Cannes, and Marseille, enhancing regional air mobility and promoting environmental sustainability.
The collaboration is set to develop a large portion of the network, leveraging the South of France's strong local ecosystem. The partnership is a pioneering step in the region, integrating eVTOLs into the existing transport infrastructure. The proposed network will include Nice Côte d’Azur airport, the second-largest in France, Cannes Mandelieu, Golfe de Saint-Tropez airports, and other locations under consideration.
Lilium is in discussions with potential operators interested in purchasing the Lilium Jet, which is designed for low noise, fully electric air travel. The French Riviera, a major tourist destination attracting over 11 million visitors annually, stands to benefit from the efficient and sustainable travel option provided by eVTOLs.
ACA has committed to achieving carbon neutrality without offsetting its own emissions by 2030. The Lilium Jet, with zero operating emissions, aligns with this environmental goal. UrbanV's vertiports will support this commitment by developing sustainable ground infrastructure for eVTOL operations.
Franck Goldnadel, Chairman of ACA, highlighted the significance of the collaboration in transforming and decarbonizing regional air mobility. Carlo Tursi, CEO at UrbanV, expressed enthusiasm for the partnership and the potential to introduce advanced air mobility in the French Riviera. Sebastien Borel, CCO of Lilium, stated the company's pride in contributing to the creation of the first regional eVTOL network in the South of France and the first commercially viable network in the EU.
This partnership is based on a press release statement.
InvestingPro Insights
Lilium N.V. (NASDAQ:LILM) is at the forefront of innovation with its electric vertical take-off and landing (eVTOL) jets, aiming to revolutionize regional air mobility. As the company forges partnerships to establish a vertiport network in the French Riviera, investors and potential operators are closely watching its financial health and stock performance. Here are some key insights based on real-time data and InvestingPro Tips:
Lilium's market capitalization stands at a modest $549.59 million, reflecting the market's current valuation of the company. Despite the challenges, two analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's future performance. However, it's worth noting that the company is not expected to be profitable this year, and it has been quickly burning through cash, as evidenced by a significant operating loss of $299.67 million over the last twelve months as of Q1 2023. This financial situation is further highlighted by the company's negative Price/Earnings (P/E) ratio of -1.31 and a Price/Book ratio of 13.66, suggesting that the stock is trading at a premium compared to its book value.
Stock price volatility remains a concern, with the price having fallen significantly over the last five years. The one-week total return as of mid-2024 shows a sharp decline of -21.73%, underscoring the stock's sensitivity to market dynamics. Additionally, Lilium's short-term obligations exceed its liquid assets, which could pose liquidity risks.
For those considering an investment in Lilium, it's essential to weigh these financial metrics against the potential for growth in the eVTOL market. For a deeper analysis and additional InvestingPro Tips, including the company's cash position and valuation implications, visit InvestingPro. There are currently 12 more tips available on InvestingPro that could provide further guidance on Lilium's prospects. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with valuable insights.
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