What happened
The S&P 500 and Dow Jones Industrial Average both dipped lower in today's trading session. Shares of Lilium (LILM -0.43%), however, headed in the opposite direction, thanks to an optimistic forecast for the Chinese economy.
For the fourth day in a row, shares of Lilium, a developer of electric vertical take-off and landing (eVTOL) jets, climbed higher. Today, though, was an especially impressive gain of altitude for the eVTOL stock as it ended the trading session, having logged a 20.3% gain.
So what
During a meeting of the World Economic Forum yesterday in China, Chinese Premier, Li Qiang, expressed optimism that the Chinese economy is poised to grow in the second quarter at a rate higher than it achieved in the first quarter of 2023. Qiang further projected that the Chinese economy will grow by about 5% in 2023 compared to 2022. The forecast is of particular note for Lilium investors because of the company's recent activity in the country.
Last week, Lilium announced plans to expand its presence in China. According to the company, China represents a significant market opportunity. Klaus Rowe, Lilium's CEO, stated, "China represents an enormous opportunity for the eVTOL industry we believe, projecting to amount to as much as 25% of the market."
Now what
Naturally, Qiang's auspicious outlook for the Chinese economy is noteworthy for investors since Lilium is taking action to establish a presence in the country. Should Qiang have waxed bearish on the economy's future, investors would likely have distanced themselves from the stock.
Though, it's important for those on the sideline to recognize that the company remains a speculative investment, as it's not generating revenue yet. Therefore, prospective investors should allot a position in the growth stock according to how comfortable they are with the related risks.
