German tech company Lilium, founded in 2015 with the goal of developing electric air taxis, is now on the verge of filing for bankruptcy. The company attributes this situation to insufficient support from the German government.
Lilium gained attention for designing electric air taxis capable of vertical takeoff and landing. However, recent statements reveal that the company is facing a severe financial crisis. A company spokesperson announced that the bankruptcy filing will be submitted to the Weilheim district court in the coming days.
Difficulty in Financing Operations
Lilium has been struggling to finance its operations for some time, attributing this challenge to a lack of sufficient private sector investments. The company’s CEO, Klaus Roewe, explained, “The initial investments are too high to be fully financed by the private sector. No single aircraft program in the world has succeeded without government funding. China and the U.S. have supported the development of electric aircraft.”
Shares Plunge
Lilium’s announcement of its impending bankruptcy filing has significantly impacted the company’s stock performance. Its shares plummeted by more than 50%, dropping to 0.23 euros. Just two and a half years ago, the stock was valued at a peak of 4.64 euros.
Uncertainty Around Employment and Future Plans
Lilium, located near Munich, employs a total of 1,100 people, including 500 aerospace engineers. The bankruptcy filing raises uncertainties about the future of its employees and projects. The fate of the electric air taxi project now hinges on whether government support will be provided to help the company navigate through its financial troubles.
© AeroHaber.com
Aviation News and Defense Industry news published on our website cannot be used without proper attribution.
Note: You can read all aviation news published on our English site in Turkish at www.airportgundem.com
