Lilium's air taxi subsidiaries face insolvency, causing a 62% stock price drop.

Lilium's air taxi subsidiaries face insolvency, causing a 62% stock price drop.
Lilium's air taxi subsidiaries face insolvency, causing a 62% stock price drop.

The air taxi company's two main subsidiaries are planning to file for insolvency, causing shares to plummet on Thursday.

The aerospace startup's shares plunged more than 63% following the news.

Lilium, which is listed on the Nasdaq, announced in a U.S. regulatory filing that it was unable to secure enough additional funds to keep operating Lilium GmbH and Lilium eAircraft GmbH, its two main subsidiaries.

Lilium announced that the heads of its subsidiaries have determined that they are overindebted and will be unable to pay their existing liabilities within the next few days.

This is a breaking news story and will be updated shortly.

by Ryan Browne

Technology