Lilium considers moving abroad as it faces financial pressures
Despite receiving around $1.5 billion in investments, the Bavarian electric vertical take-off and landing (eVTOL) developer Lilium is still struggling with minimal revenue. Now, the company is hinting at relocating abroad and bringing in major international investors, possibly to increase pressure on the German federal government and the state of Bavaria for a state loan of at least €100 million.
Lilium has not specified exactly how long its current funding will last, but it is clear that the company, located near Munich, continues to need financial support. The suggestion of moving operations overseas or bringing in foreign investors seems aimed at encouraging Germany and Bavaria to provide a state-backed loan.
“We would prefer to continue expanding our business in Munich,” a company spokesperson said. However, the spokesperson also added, “If that is not feasible, we are open to any proposal that offers a concrete opportunity to develop Lilium’s outstanding technologies into a commercial success.”
In May, Lilium’s CEO Klaus Roewe expressed confidence that a review by the state-owned KfW bank for a loan with guarantees from the federal government and Bavaria would be decided quickly. However, no decision has been made yet. Additionally, Lilium has acknowledged that the first manned flight has been delayed to early 2025, which will further increase costs. The company still expects to begin commercial operations in 2026.
CEO Roewe and Lilium’s Chairman, former Airbus CEO Thomas Enders, have repeatedly complained about the lack of interest from German investors in the project. In contrast, investors from the U.S. and China are seen as more willing to take risks, and there is also more government support available in those countries.
Over 100 firm orders and 600 letters of intent
Lilium is now linking its location decision to Germany’s willingness to support Lilium’s technology as a future solution for environmentally friendly electric flight over short and medium distances. The question now is whether Bavaria and Germany are prepared, like the U.S., China, and France, to advance the electrification of aviation and create relatively comparable competitive conditions, according to the company spokesperson.
The startup, which now has around 1,000 employees, sees itself not as a provider of traditional rotorcraft-style air taxis, but as a developer of e-jet vertical takeoff aircraft for four to six people. Roughly $1.5 billion has already been invested in Lilium’s development, but so far, revenue remains nearly nonexistent. The company has secured over 100 firm orders and letters of intent for 600 aircraft.
In light of the lack of government support, Lilium has reportedly already hired advisors to explore a possible move abroad and a sale to foreign investors. A spokesperson confirmed that Lilium is looking to attract more investors but declined to comment on advisors or their assignments. When asked about a possible large-scale sale to China, the spokesperson replied, “That is not on the agenda, but it is certainly not ruled out. We must do what is best for our company.” Chinese technology investor Tencent is already one of Lilium’s major shareholders.
