Is good idea to sell lilium now ?
11/7/2024 11:09am
**Lilium's financial struggles and market position indicate caution is warranted.** Here's a detailed analysis:
1. **Financial Health Concerns**: Lilium is facing significant financial challenges, including insolvency proceedings and the need for new investment to continue operations. The company has been unable to secure a loan guarantee from the German government, which has led to its current predicament.
2. **Stock Performance and Market Sentiment**: Lilium's stock has experienced significant declines, reflecting poor market sentiment. The company's shares have been delisted from NASDAQ, which could further depress its value and trading volume.
3. **Strategic Position and Future Prospects**: Lilium's business model and strategic plans are uncertain. The company's electric aircraft technology is complex and may be difficult to sell off in pieces, as it is considered an integrated package. Despite this, the company has received some orders and reservations for its Lilium Jet, which could potentially offer some recovery if it manages to secure funding.
4. **Industry and Market Challenges**: The aviation industry, especially for startups like Lilium, is highly competitive and capital-intensive. The development of electric vertical takeoff and landing (eVTOL) aircraft is fraught with challenges, including battery development, regulatory approval, and public acceptance. These factors add to the uncertainty surrounding Lilium's future.
5. **Expert Opinions and Investigations**: There are investigations into Lilium's possible violations of federal securities laws, which could lead to further legal and financial repercussions.
Given these points, it is currently not a good idea to sell Lilium shares. The company faces significant financial and operational challenges, and its stock is likely to be affected by these issues. Investors should exercise caution and consider the potential for further losses. If you are thinking of buying, it might be more prudent to wait for further information on the company's financial recovery and market conditions.