Once a standout in the emerging electric aircraft industry, German company Lilium, which had raised over $1 billion in pre-IPO funding, has ceased operations and laid off approximately 1,000 employees following failed efforts to secure financing and escape bankruptcy. According to German media outlet Gründerszene, Lilium’s co-founder and CEO, Patrick Nathen, confirmed on LinkedIn that the decade-old company has halted operations.
Nathen wrote: “After 10 years and 10 months, it is with a heavy heart that we must accept that Lilium has ceased operations. The company Daniel, Sebastian, Matthias, and I founded can no longer pursue our shared belief in creating a more environmentally friendly way to fly. The timing is particularly ironic.” The layoffs have affected a significant portion of the company’s workforce. A regulatory filing on December 16th revealed that the company had already laid off around 200 employees a few days prior.Lilium was committed to developing vertical takeoff and landing (VTOL) aircraft capable of speeds up to 100 kilometers per hour, but has been struggling for months. The startup’s vision for electric aircraft attracted investors such as Tencent and secured customers, including an order for 100 electric jets from Saudi Arabia. In 2021, the company went public on the NASDAQ stock exchange through a reverse merger with special purpose acquisition company (SPAC) Qell.
Although the company made some progress, including launching its first full-scale prototype, it was still years away from delivering products. In October of this year, Lilium announced that it would file for bankruptcy after failing to raise emergency funds from the German government. Following bankruptcy proceedings, Lilium lost control of its subsidiaries, including Lilium eAircraft.
