Since 2019, electric vertical take-off and landing aircraft (eVTOL) makers have raised an estimated $13 billion. However, analysts warn “billions more will [still] be needed to achieve certification, large-scale aircraft production and profitability,” a concern for many given investment peaked in 2021 at $4.3 billion.
Although investment was stronger this year than last, with eVTOL makers raising $2.3 billion so far, many companies developing eVTOLs or ‘air taxis’ are facing serious financial difficulties.
This month, eVTOL front runner Lilium placed its main operating business into insolvency proceedings after a German parliament Budget Committee failed to approve a loan guarantee. Despite this, Lilium told Forbes there are still plans in place for a first flight in early 2025.
Fellow Germany-based eVTOL company, Volocopter failed to raise €100m from the German government in April. But, having not secured this, Bloomberg reported that Chinese automotive giant, Geely, is in talks to rescue the company with a $95 million cash injection. This would come with a majority stake of the company, approximately 85 per cent. The financial struggles come amid a difficult year for Volocopter, which was forced to scrap plans to debut eVTOL air taxi services at the Olympic and Paralympic Games earlier this year.
Following their own significant financial struggles, Bristol based Vertical Aerospace secured $50 million investment from Mudrick Capital. Stuart Simpson, Chief Executive of Vertical, described it as a “really exciting, pivotal day for the company”. This funding is expected to support Vertical until the end of 2025.
Although the future is uncertain for many eVTOL developers, it is looking hopeful for some. Reuters reported that “Archer, Eve, and Joby are among the best-positioned to continue operating long enough to at least reach certification.”
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