Lilium, the German electric vertical takeoff and landing (eVTOL) startup, has laid off nearly all its employees as the company faces impending liquidation, according to German outlet Gründerszene. Co-founder Patrick Nathen confirmed the closure in a social media post, marking the end of nearly 11 years of operations for the ambitious air taxi company.
Unresolved Funding and Insolvency
Founded in 2015, Lilium has struggled with financial challenges throughout 2024. The company’s efforts to secure a €100 million loan from the German federal and Bavarian state governments failed in October, a critical setback that left Lilium without sufficient resources to continue operations.
Although the company had expressed optimism about securing investment, including advanced discussions with the French government for an industrial expansion, no funding materialized in time. After being delisted from the New York Stock Exchange in October, Lilium filed for self-appointed insolvency proceedings and enlisted KPMG to oversee potential mergers or acquisitions.
Despite these efforts, Lilium laid off most of its workforce, retaining only a small team to assist with liquidation procedures.
Milestones and Unrealized Potential
As of last month, Lilium’s order book included 108 firm orders, 82 options, and nearly 60 aircraft under Memoranda of Understanding (MoUs). The company aimed to achieve type certification for its all-electric Lilium Jet by 2026, with plans to enter service shortly after.
Lilium engineers had continued development work through November, including completing a landing gear drop test and moving one of the two assembled Lilium Jet airframes into static testing. However, these technical milestones were overshadowed by the company’s financial struggles.
A Legacy in Deep-Tech Innovation
In a farewell message to employees, co-founder Patrick Nathen praised their efforts:
“Never let the naysayers diminish what you’ve achieved. Building a company from scratch to tackle one of the most complex technical challenges of our time is nothing but extraordinary. Your legacy will echo through the deep-tech world.”
What’s Next for Lilium’s Assets
With liquidation proceedings underway, the future of Lilium’s technology, assets, and intellectual property remains uncertain. CEO Klaus Rowe had previously expressed optimism about securing fresh investment to keep the company afloat, but no further updates on potential buyers or restructuring plans have been announced.
Lilium’s closure underscores the immense challenges faced by startups in the eVTOL and advanced air mobility sector, despite the industry’s promising potential to revolutionize urban transportation.
