Lilium has accumulated losses of almost 1.5 billion euros without generating any revenue. Now the money is running out. Bankruptcy is looming.
The fate of Lilium will be decided by the end of the year at the latest. In the semi-annual report now submitted to the US Securities and Exchange Commission (SEC), the developer of the vertical take-off aircraft with electric turbines shows progress in the development of its models – but urgently needs more money. If state financial aid from the federal government and the state of Bavaria is not confirmed in the next few weeks or investors give new money, there is a risk of drastic cuts in business operations, including the application of “current insolvency law”. Lilium is hoping for state guarantees totaling 100 million euros.
The documents literally state that, according to financial planning, “the group requires immediate additional capital to continue to finance its ongoing operations.” In the past, Lilium has repeatedly referred to the need for additional capital until the e-air taxis are approved by the EASA supervisory authority and ready for use. Every shift in the schedule costs money. The first manned flight has been postponed from the end of this year to the beginning of 2025. The market launch is planned for 2026, although this date is no longer explicitly mentioned in the latest report. For the first time, Lilium refers to insolvency law in a stock market report.
Volcopter was able to stave off bankruptcy
The second German developer of air taxis, Volocopter, also threatened bankruptcy in the spring. However, this was averted through a capital injection from the previous shareholders, including the Chinese Geely Group.
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Volocopter had also asked for state aid, which initially failed due to the veto of Baden-Württemberg and Bavaria, while the federal government gave the green light. With Lilium it is the other way around. Bavaria has now promised to assume liability for 50 million, while the federal government has not yet approved the same amount in the budget committee.
Lilium's financial dilemma
The financial dilemma of Lilium, based just outside Munich, is reflected in a few figures. According to information provided to the US Securities and Exchange Commission, losses totaling 1.446 billion euros have been accumulated so far – with virtually no sales. In the first half of 2024 alone, the operating loss was 185.9 million euros (same period last year: 128.5 million euros). Due to the positive revaluation of financial assets, the net loss in the first half of the year was 86.9 million euros. The available financial resources (cash) amounted to just under 110 million euros at the middle of the year. Lilium reports on advanced discussions with the federal government and Bavaria about financial aid. Approval is expected in the next few weeks.
It will take another three to five weeks until the final documents are created. Previous investors have already promised a capital injection of 32 million euros and have made this partly dependent on state aid.
“Power-On”: The power supply is working
The company reports further progress in the development of its electric flight model, which is intended to be used like a small vertical take-off regional aircraft. The first three models are either already finished or production has started. Production of the fourth model is scheduled to begin in the first half of 2025.
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Lilium considers the fact that the “power-on” milestone has now been reached in the final design of the first model to be a major development success. For the technicians, it is proof that the power supply and the connected electronics are working as planned. As with some electric cars, the power grid is based on a 900-volt architecture, which allows the batteries to be charged relatively quickly.
This article first appeared on World.
Source: https://www.businessinsider.de/gruenderszene/business/lilium-flugtaxi-startup-warnt-vor-insolvenz/
