Lilium, a German startup that once led the charge in electric aircraft innovation, has ceased operations and laid off approximately 1,000 workers. After nearly 11 years of development and raising over $1 billion in funding, the company failed to secure the financing needed to continue operations or exit insolvency proceedings.
The news was first reported by Gründerszene, with Lilium’s co-founder and CEO, Patrick Nathen, confirming the closure in a LinkedIn post. Nathen expressed deep disappointment, stating, “After 10 years and 10 months, it is a sad fact that Lilium has ceased operations. The company that Daniel, Sebastian, Matthias, and I founded can no longer pursue our shared belief in more environmentally friendly aviation. This is heartbreaking and the timing feels painfully ironic.”
The layoffs encompass the majority of the company’s workforce, following a regulatory filing on December 16 that announced 200 job cuts. Efforts to reach Lilium for further comment were met with a brief response from a company spokesperson, indicating that an official statement would be made later.
Lilium had been developing vertical take-off and landing (VTOL) aircraft, capable of speeds up to 100 km/h, aiming to revolutionize sustainable aviation. Backed by notable investors such as Tencent, the startup also secured significant customer interest, including an order for 100 electric jets from Saudi Arabia. In 2021, the company went public on the Nasdaq through a merger with the SPAC Qell.
Despite achieving milestones like powering up its first full-scale prototype, Lilium was years away from delivering its product. Mounting financial challenges began surfacing in October when the company announced plans to file for insolvency after failing to secure emergency funding from the German government. Under these proceedings, the company lost control of its subsidiaries, including Lilium eAircraft, with KPMG overseeing the sale process.
The closure marks a sobering moment for the electric aviation sector, highlighting the challenges of balancing innovation, development timelines, and financial sustainability.
Featured image courtesy of BNN Bloomberg
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