GE Aerospace ($GE) and Lilium N.V. ($LILM) are both rising steadily today after announcing a new eVTOL partnership. The struggling German aerospace tech company may have finally found its saving grace after a year of decline. According to a statement released today, the two companies are joining forces to create a new safety foundation for the eVTOL industry as the sector prepares to take off.
Why Is Lilium N.V. Stock Up Today?
News of this partnership has sparked significant momentum for Lilium, a company that is trying to recover from an extremely difficult year. LILM stock is up almost 8% today and looks primed to continue trending upward. This is the first real progress it has seen in weeks. Shares are currently down 43% for the past three months, although they took a steep dive recently.
GE Aerospace is also in the green today, up 2.5% after sinking yesterday despite beating Q3 earnings estimates. This partnership likely isn’t impacting GE stock too much, if at all, given how small a company Lilium is. However, it does bode well for the future of the eVTOL industry, which is poised to transform the future of transportation in the coming years.
Andrew Coleman, General Manager of the GE Aerospace Software-as-a-Service (SaaS) Group, recently stated, “Together with Lilium, [], we’re bringing together OEM-level flight data monitoring and quality assurance capabilities of EMS with Lilium’s eVTOL jet-related analytics platform to establish a robust safety foundation for eVTOL industry that will help to accelerate commercial scale adoption of this exciting new technology.”
The eVTOL Sector Received More Good News Yesterday
The eVTOL sector received more good news yesterday. The Federal Aviation Administration (FAA) recently released a new set of regulations for flight safety, creating positive momentum for companies such as Joby Aviation ($JOBY) and Archer ($ACHR). Now, this partnership between GE Aerospace and Lilium could help the industry continue moving forward.
Is GE Stock a Strong Buy Right Now?
LILM stock only has two analyst ratings right now, both of which are Holds. But analysts remain highly bullish GE stock with a Strong Buy Consensus rating based on 11 Buys issued over the past three months. Furthermore, the average GE stock price target of $209.64 represents a 15.82% increase from current levels.
