10 Worst Aerospace Stocks To Buy According to Short Sellers

7. Lilium NV (NASDAQ:LILM)

Short % of Float: 7.27%

Number of Hedge Fund Holders: 5

Formerly known as Lilium BV, Lithium NV (NASDAQ:LILM) is an aviation company based in Germany. It specializes in developing electric vertical takeoff and landing (eVTOL) aircraft for air transport system use for goods and people that offer connectivity. Its product is the Lilium Jet: a seven-seater electric jet aircraft that takes off and lands vertically with low noise. The Jet architecture is based on Ducted Electric Vectored Thrust (DEVT) technology, comprising electric turbofans mounted within a cylindrical duct. Its eVTOL aircraft is fitted with lightweight materials, battery technology, sensors and computing power, and propulsion technology.

Lilium NV (NASDAQ:LILM) also operates a digital platform that offers integration between Lilium Jets and its vertiports. Customers can use its online booking channel to find suitable flights, select related travel products, make reservations, and collect necessary passenger information.

The company boasts a unique business model, approach, and core technologies that help it stand out. It has five primary differentiators that lend it a competitive industry edge. It has a management team with substantial prior experience in the field, with a majority of its employees being engineers.

In addition, it is working on the conviction that it is the only aerospace company resolving regional air mobility. It has a core technology built around its high-performance battery and redundant electrical management system. Since the company holds IP and proprietary rights on this technology, it is driving its leading product range and speed.

Lilium’s (NASDAQ:LILM) aircraft is one of the very few in the industry on track to achieve the highest certification standards in commercial aviation. It also has high-level safety standards that are likely to support its market entry in several jurisdictions across the globe. Its business model targets the most profitable portions of commercial aviation, the OEM, and aftermarket business.

The company is continually ramping up its business, focusing on airline customers with robust aftermarket service activity. Its momentum is growing, with its first test aircraft advancing and its order pipeline growing with significant funding progress. All these factors make it a profitable investment, giving it the seventh spot on our list of the 10 worst aerospace stocks to buy according to short sellers.