Flying Taxi Startup Lilium Faces Bankruptcy After Burning Through…

Team S · 2024-10-28T12:42:43.000Z

Lilium, a German flying taxi startup, is on the brink of insolvency after exhausting its $1.1 billion funding raised since 2021. The company, which has been developing a six-passenger electric vertical take-off and landing (eVTOL) aircraft, plans to file for insolvency and seek government-supervised restructuring. Founded in 2015 by four engineers and PhD students from the Technical University of Munich, Lilium went public via SPAC in September 2021, raising $584 million at a $3.3 billion valuation. Despite securing additional funding and signing deals with various partners, including Saudi Arabia and Azul Airlines, the company has failed to secure sufficient funds to continue operations. Lilium's financial struggles highlight the capital-intensive nature of the flying taxi industry. The company's recent request for a €50 million loan from the German government was denied, further exacerbating its financial woes. Lilium's stock price has plummeted 75% over the past two days, and it previously faced delisting threats due to its share price falling below the $1 minimum requirement. The flying taxi sector, while promising potential benefits such as reducing airport commute times from 90 minutes to 7, faces significant challenges. Other startups in the industry, including Joby Aviation and Vertical Aerospace, have also encountered financial difficulties, underscoring the high costs associated with developing and certifying eVTOL aircraft. Lilium, which employs over 1,000 people, now faces an uncertain future as it seeks additional financing or potential asset buyers to avoid shutdown. https://skift.com/2024/10/25/flying-taxi-startup-lilium-burned-through-1-billion-now-its-facing-bankruptcy/

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Flying Taxi Startup Lilium Faces Bankruptcy After Burning Through… | Newnex