Lilium, the German developer of electric air taxis, is in the midst of a critical phase as it negotiates with multiple potential buyers. Reports from Wirtschaftswoche indicate that Lilium received offers from investors last week, with the aim of finalizing a deal by the end of this week.
However, details on the identity of the bidders and the purchase price remain unclear. With Lilium’s stock value currently at just a few cents, the transaction is expected to be valued at around one hundred million euros, similar to an alleged offer for its competitor Volocopter by Chinese car manufacturer Geely.
In addition to the sale negotiations, Lilium is facing severe financial strain. The company has announced plans to reduce its workforce by 20%, meaning approximately 200 out of 1,000 employees will lose their jobs as part of a broader cost-cutting program.
This restructuring comes despite Lilium’s efforts to maintain its operations. Recently, the company signed a purchase agreement with The Ambitious Group (A.A.M.G) for eight Lilium jets, with the option to acquire six more, expanding its order pipeline to a total of 108 firm orders and reservations, plus 82 options and letters of intent for 600 electric aircraft.
Lilium, which has received around 1.5 billion euros from investors over the years, entered self-administered insolvency in November after failing to secure additional funding. The company had sought state aid from both the federal government and the Free State of Bavaria, but in mid-October, it became clear that no financial support would be forthcoming. Despite the challenges, Lilium is striving to secure its future and is working toward financial reorganization while exploring potential strategic options with new investors.
