Lilium, a once-prominent player in the emerging electric aircraft sector that secured over $1 billion prior to becoming public, has halted its operations and terminated around 1,000 employees following unsuccessful attempts to secure funding and escape insolvency.
Update: There may be a possibility for Lilium’s revival. In a statement released on December 24, the company announced that a group of investors has agreed to take over two of its subsidiaries, which could facilitate its restructuring and help it exit insolvency.
The news outlet Gründerszene was the first to publicly share details about the layoffs. Lilium co-founder Patrick Nathen confirmed via LinkedIn that the 10-year-old venture has ceased its operations.
“It is with great sadness that I announce Lilium has halted operations after 10 years and 10 months. The company, which was founded by Daniel, Sebastian, Matthias, and myself, can no longer continue our shared commitment to promoting sustainable aviation. This is truly heartbreaking, and the timing feels painfully ironic,” Nathen expressed.
The layoffs encompass the majority of the staff and followed a previous round of job cuts where around 200 employees were dismissed, as detailed in a regulatory filing dated December 16.
A representative from Lilium provided a response to an inquiry but refrained from offering any details. “The company will share information as soon as it is appropriate to do so,” was the information provided.
Lilium was engaged in developing vertical take-off and landing (VTOL) aircraft, aiming for speeds of up to 100 km/h, but faced significant challenges in recent months. The start-up’s vision for electric aircraft drew in major investors such as Tencent and secured clients, including a substantial order for 100 electric jets from Saudi Arabia. In 2021, the company listed on the Nasdaq Exchange through a reverse merger with the SPAC, Qell.
Although Lilium achieved some milestones, including energising its first full-scale prototype, it remained several years away from delivering a viable product.
In October, Lilium announced its intentions to file for insolvency, which is the U.S. equivalent of bankruptcy, after failing to secure urgent funding from the German government. As a result of the insolvency proceedings, Lilium relinquished control over its subsidiaries, including Lilium eAircraft, with KPMG overseeing the sale process.