A last-minute acquisition has saved German electric air taxi startup Lilium from an imminent collapse, the company said Tuesday (December 24).
Following the layoff of its entire workforce, Lilium announced that its German operating units were sold to Mobile Uplift Corporation – a company set up by a consortium of European and North American investors – averting a complete shutdown.
While the financial terms of the deal remain undisclosed, Philipp Schoeller, a founding partner of General Capital Group, is reportedly involved in the investor consortium.
Lilium, which is headquartered in Munich, wrote on X that the agreement is expected to be finalized at the start of January.
Lilium Eyes 2026 For Customer Deliveries
Founded in 2015, Lilium garnered significant attention, securing 100 firm orders for its jets and hundreds of additional pre-orders.
Among its future clients is Saudi Arabia’s national carrier, Saudia, which signed an agreement this year to purchase 50 aircraft, with an option to acquire 50 more.
Lilium’s air taxis are designed to carry four to six passengers over distances of up to 110 miles at speeds of 155 miles per hour.
Despite its promise, the company has yet to conduct a manned test flight. The first trial is anticipated next year, with customer deliveries slated for 2026.
Germany’s Startup Funding Support Under Scrutiny
Lilium faced major financial challenges despite securing $1.5 billion from investors, primarily from the U.S. and China. Development costs consumed vast resources, leaving the company to seek state assistance. However, in October, Germany’s parliament declined to approve a $55 million loan guarantee.
Lilium’s struggles sparked a broader debate about Germany’s support for startups. Critics argue the country lacks sufficient funding mechanisms to nurture innovative companies, drawing unfavorable comparisons with the U.S. and other nations.
