A New Chapter for Lilium: Investors Step In to Revive Electric Air Taxi Startup
In an unexpected turn of events, Lilium, the electric air taxi startup that recently halted operations and laid off about 1,000 employees, is poised for a fresh start. A consortium of investors has come forward to breathe new life into the company. Mobile Uplift Corporation, established by investors from both Europe and North America, announced on Tuesday that it will acquire the operating assets of Lilium’s subsidiaries, Lilium GmbH and Lilium eAircraft GmbH.
Interestingly, Lilium N.V., the parent company, will not receive any funds due to German insolvency law. The deal, managed by consultancy giant KPMG, is set to close in January. Although details remain under wraps, Mobile Uplift Corporation has expressed intentions to rehire some of the laid-off workers post-transaction. However, it’s still uncertain if all 1,000 employees will be reinstated.
“We are very pleased to announce the signing of an investment agreement with a very experienced consortium of investors, which is a major breakthrough,” said Klaus Roewe, CEO of Lilium.
– Klaus Roewe
The plan is clear: once the deal is finalized, restructuring will enable Lilium to emerge from insolvency while retaining its technology and shedding its debt. This marks a significant milestone for the company that had previously raised over $1 billion from private investors before going public in 2021 via a reverse merger with SPAC Qell on the Nasdaq Exchange.
- Lilium had secured notable customers, including an order for 100 electric planes from Saudi Arabia.
- The company faced financial challenges as it developed its VTOL aircraft.
- Despite promising advancements, Lilium couldn’t sustain its cash flow and filed for insolvency in October after failing to obtain emergency funds.
As this new chapter unfolds, all eyes are on how effectively Lilium can leverage this investment to pivot and regain momentum. With a promising technology and a fresh financial backing, there’s cautious optimism surrounding what comes next for this innovative air mobility pioneer.
