What is lilm expected to do in the market this coming week
10/27/2024 06:10pm
Lilium (LILM) is not expected to have a positive performance in the coming week, as indicated by the forecast prices and the ongoing financial struggles of the company.
1. **Expected Market Performance**: The forecast prices for Lilium (LILM) show a declining trend over the next ten trading days, with prices expected to decrease from $0.44 to $0.30. This suggests a bearish outlook for the stock in the short term.
2. **Financial Struggles**: Lilium's financial situation is under significant pressure. The company's two main subsidiaries have filed for insolvency after being denied a critical loan by the German government. This denial has led to a loss of confidence in the company's ability to secure funding, which has resulted in a significant drop in its stock price.
3. **Government Loan Denial Impact**: The denial of a €100 million loan from the German federal government was a critical blow to Lilium's financial plans. The company had been relying on this loan to secure additional private capital, and without it, it has been left with insurmountable debt. This has led to a loss of investor confidence and a sharp decline in the stock price.
4. **Insolvency and Administration**: Lilium has announced plans to seek self-administration proceedings for its main German subsidiaries due to insolvency. This move is aimed at preserving operations under court supervision and restructuring the business, but it does not change the negative outlook for the company's stock.
In conclusion, Lilium (LILM) is expected to face continued challenges in the market due to its financial struggles and the lack of positive developments in its efforts to secure funding. The forecast prices and the company's own announcements indicate a bleak outlook for the stock in the coming week.