Electric Air Taxi Manufacturer Lilium Runs Out of Money

The firm on Thursday said its two core subsidiaries will file for insolvency with a court in Germany following the denial of a 50 million euros ($54 million) loan guarantee from the Bavarian government. The move unraveled the company’s plans to raise funding from its shareholders, who viewed German officials’ confidence in the aircraft as essential and the loan guarantee as a prerequisite to the agreement.

Lilium said it applied for insolvency under self-administration, which per German law would allow the current owners to retain control and operation of the business as it seeks to sell its assets—or persuade an outside investor to buy it.

“We deeply regret the insolvency and its consequences for all stakeholders at such a crucial stage of our company’s development,” Klaus Roewe, CEO of Lilium, told investors. “While there is no guarantee for success in insolvency proceedings, we hope that the Lilium Jet will get a chance for a fresh start after the self-administration process is completed.”

The company said it would share more information with investors, customers, and employees after the filing and associated procedures are complete.

Lilium is among a growing number of manufacturers developing eVTOL aircraft, which lift off vertically like a helicopter but cruise on wings like an airplane. Its Lilium Jet relies on 30 electric ducted fans that point toward the ground during takeoff and landing but tilt forward to aid in cruise flight. Unlike competitors designing shorter-range eVTOL air taxis, the design is built for regional city-to-city trips.

Lilium said it has about 780 firm orders, reservations, options, and memoranda of understanding (MOU) for its flagship model—which it expected to deliver in 2026—from customers in the U.S, Europe, Middle East, and Asia. The manufacturer in 2023 began assembling an initial set of full-scale prototypes, one of which was on display at the National Business Aviation Association-Business Aviation Convention & Exhibition (NBAA-BACE) in Las Vegas earlier this month.

But without support from the German government, whose analogs in other countries have poured money into domestic eVTOL manufacturers, investors weren’t confident enough to back another capital raise.

Lilium said it was separately in “advanced discussions” with the French government for a loan of about 220 million euros ($238 million), which would have helped finance the construction of a battery factory and assembly line in the country. It expected to receive additional funding and revenue from predelivery payments next year following the Lilium Jet prototype’s first test flight, which it said would have kept it afloat through 2026.

“Self-administration, if and when granted by the court, aims to preserve and continue the business that is the subject of the proceedings,” Lilium said. “In Germany, the procedure is generally perceived as providing an improved chance for a successful in-court business restructuring.”

Lilium last year became the first eVTOL aircraft manufacturer to earn certification bases for its design from both the FAA and European Union Aviation Safety Agency (EASA).

The company had planned for U.S. operating partner UrbanLink Air Mobility to launch in South Florida, California, and Puerto Rico as soon as 2026. The FAA, meanwhile, last week finalized a set of rules for eVTOL pilot training and operations, laying the foundation for the technology to grow.

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