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Electric Air Taxi Manufacturer Lilium Runs Out of Money

Company had planned to launch in South Florida, California, and Puerto Rico as soon as 2026.

Tuesday, October 29, 2024 at 12:55 PM ET

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Lilium’s flagship Lilium Jet is an electric vertical takeoff and landing (eVTOL) design built for a pilot to fly as many as seven passengers. [Courtesy: Lilium]

Key Takeaways:

Lilium, an eVTOL jet manufacturer, is filing for insolvency in Germany after the Bavarian government denied a crucial €50 million loan guarantee, which was a prerequisite for securing shareholder funding.
The company will seek insolvency under self-administration, a German legal process allowing current management to retain control while attempting to restructure the business or find new investors.
Despite having hundreds of orders and achieving dual certification bases from the FAA and EASA, the lack of German government support eroded investor confidence, jeopardizing its plans for regional city-to-city eVTOL jet operations by 2026.

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Lilium, the manufacturer of an electric vertical takeoff and landing (eVTOL) jet designed to fly as many as seven passengers on 100-mile trips between cities, is out of cash.

The firm on Thursday said its two core subsidiaries will file for insolvency with a court in Germany following the denial of a 50 million euros ($54 million) loan guarantee from the Bavarian government. The move unraveled the company’s plans to raise funding from its shareholders, who viewed German officials’ confidence in the aircraft as essential and the loan guarantee as a prerequisite to the agreement.

Jack Daleo

Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.