Lilium, a German aerospace startup known for its electric vertical take-off and landing (eVTOL) vehicles, is currently facing insolvency and urgently seeking emergency funding from the Bavarian state government.
The company, once valued at $3.3 billion and considered a leader in the air taxi industry, has struggled to secure necessary state aid, leading to its current financial predicament.
Lilium had requested a €50 million loan from the federal government, but unfortunately, this request was rejected. The denial of support has sparked a debate about government funding for innovative startups, with comparisons being made to the support received by Tesla in its early years.
Lilium has made a strategic shift in its business model, now focusing on partnerships with established airlines and airport operators. This new approach has allowed the company to secure partnerships with Lufthansa, Saudia, and Groupe ADP.
Despite its initial success and significant investments, Lilium's shares have plummeted since its IPO, reflecting the challenges faced by the eVTOL sector as a whole.
The future of eVTOL technology and the air taxi business model heavily depend on Lilium's ability to secure funding and overcome its current challenges. The industry is closely watching the outcome of Lilium's efforts, as it will have a significant impact on the overall perception and viability of this innovative transportation sector.