Lilium, a pioneering electric aircraft startup that once commanded a valuation of over $1 billion, has ceased operations and laid off approximately 1,000 workers, according to reports. The news marks a stunning downfall for the 10-year-old company, which had been struggling to stay afloat amid financial difficulties.

The layoffs, which cover the bulk of Lilium's workforce, come just days after the company let go of around 200 employees, as disclosed in a regulatory filing on December 16. The move was confirmed by Lilium co-founder and CEO Patrick Nathen in a LinkedIn post, where he expressed his sadness and frustration at the company's demise.

Lilium's troubles began to surface in October, when it announced plans to file for insolvency, the equivalent of bankruptcy in the United States. The company had been seeking emergency funding from the German government but was unsuccessful in securing the necessary capital. As a result, Lilium lost control of its subsidiaries, including Lilium eAircraft, and was forced to initiate a sale process under the guidance of KPMG.

Despite its promising vision for electric aircraft, which had attracted high-profile backers like Tencent and secured significant customer orders, including a deal for 100 electric jets from Saudi Arabia, Lilium was still years away from delivering its product. The company had made progress, powering up its first full-scale prototype, but it was ultimately unable to overcome its financial hurdles.

The collapse of Lilium serves as a cautionary tale for the electric aircraft industry, which has been gaining momentum in recent years. The startup's failure to secure funding and exit insolvency highlights the significant challenges that companies in this space face in terms of scaling production and achieving commercial viability.

As the electric aircraft industry continues to evolve, Lilium's demise will likely have far-reaching implications for investors, customers, and competitors alike. The company's struggles serve as a reminder of the importance of robust financial planning and strategic partnerships in the pursuit of innovation and growth.

At the time of writing, Lilium's spokesperson had declined to provide further comment, stating that the company would communicate once it was able to do so. The future of Lilium's assets and intellectual property remains uncertain, leaving many questions unanswered about the fate of this once-promising startup.