Electric air-taxi startup Lilium set to merge with former GM executive's SPAC in $3.3 billion deal

• Electric air-taxi startup Lilium is set to go public via a SPAC merger in a deal worth $3.3 billion.
• Lilium will merge with Qell Acquisition Corp., which is led by a former executive of General Motors.
• The 7-seater jet under development at Lilium can take off and land vertically and has a planned commercial launch of 2024.
• Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The SPAC craze continued on Tuesday as electric air-taxi startup Lilium said it would merge with Qell Acquisition Corp. in a deal worth $3.3 billion in pro forma equity value of the combined companies.

Lilium is a German-based firm that is developing electric air-taxis that can vertically take-off and land. The firm is currently building a 7-seater jet that it expects to launch commercial operations for in 2024. According to Lilium, the electric taxi-jet has a projected cruise speed of 175 mph at 10,000 feet, and has a range of 155 miles.

Former General Motors executive Barry Engle will join the board of the combined company, as will former Airbus CEO Tom Enders.

"I have spent my career in mobility and been part of the electrification of the automotive industry. The market and societal potential from the electrification of air travel is enormous," Qell said.

The SPAC merger will raise total gross proceeds of $830 million for Lilium, and investors include Baillie Gifford, BlackRock, Tencent, and Palantir. Lilium will use the proceeds to fund the launch of commercial operations, including finalizing production facilities in Germany and obtaining type certification of the aircraft.

Qell Acquisition Corp. traded up 3% on the merger news to just above its $10.00 offering price.