Lilium, the Electric Aircraft Startup, Shuts Down

Electric aircraft startup Lilium is shutting down after failing to raise emergency money from the German government. The company was developing vertical take-off and landing (VTOL) aircraft with speeds of up to 100 km/h.

Lilium Shut Down

Lilium announced its shutdown in a regulatory filing, citing the inability to raise sufficient funds.

Reasons for Shutdown

Failure to Raise Emergency Funds

The company was unable to secure a 50 million euro ($54 million) loan from the German government. The German Parliament's budget committee denied the request, citing budget constraints.

Setbacks in Electric Aircraft Industry

The electric aircraft industry is still in its early stages. Lilium faced challenges related to development, testing, and production.

Cash Burn

Lilium's development efforts resulted in significant cash burn. The company had raised over $1 billion from investors, but it wasn't enough to sustain its operations.

Prototype Accident

In 2020, one of Lilium's prototype aircraft burst into flames during maintenance. This incident delayed testing and raised concerns about the safety of the aircraft.

Government Loan Denial

The German government denied Lilium's request for a loan, dealing a critical blow to the company's financial stability.

Lilium's Background

Development of VTOL Aircraft

Lilium was focused on developing electric VTOL aircraft. These aircraft can take off and land vertically, making them suitable for short-haul flights.

Funding from Investors

Lilium had raised over $1 billion from investors, including high-profile firms like Tencent.

Public Listing in 2021

Lilium went public in 2021 through a reverse merger with a SPAC (Special Purpose Acquisition Company).

High-Profile Investors

The company had secured funding from several prominent investors, including Tencent and other venture capitalists.

Customer Orders

Lilium had received orders for its aircraft, including a significant order from Saudi Arabia for 100 electric jets.

Future of Lilium

Insolvency Filing

Lilium plans to file for insolvency in the next few days under German law.

Loss of Subsidiary Control

The insolvency filing will result in Lilium losing control of its subsidiaries, including Lilium eAircraft.

Summary

• Lilium, an electric aircraft startup, shut down due to a lack of funding.
• The company was unable to secure a loan from the German government and had faced several setbacks.
• Lilium had secured investments from prominent firms, but its cash reserves were insufficient to sustain operations.
• The company's prototype aircraft accident in 2020 further hampered its progress.
• Lilium's future is uncertain, as it faces insolvency and a loss of control over its subsidiaries.