Electric aircraft startups are having a topsy-turvy week

The emerging world of electrified air travel has experienced big highs and lows in the past few days.

Late last week, the Vermont-based startup Beta Technologies announced that it landed $318 million in Series C equity capital to produce and commercialize its all-electric aircraft and battery charging systems. The new investment, which was led by Qatar’s sovereign wealth fund, brings Beta’s total funding to more than $1 billion in equity capital.

Meanwhile, German air-taxi startup Lilium may be grounded for good. On Monday, the company said it had failed to secure new funding to continue its operations and would file for insolvency ​“soon,” Reuters reported. Lilium, which has an office in Florida, debuted on the Nasdaq stock exchange in 2021 through a SPAC deal initially valued at $3.3 billion.

Beta and Lilium are among dozens of startups that are working to take battery power to the skies, often with the backing of major airlines and climate investment funds.

Some companies, including Wright Electric and Heart Aerospace, are developing electric aircraft that could potentially replace conventional, fuel-burning planes for quick island-hopping trips or regional routes. The effort is gaining momentum globally as airlines and their frequent-flier customers are facing mounting pressure to slash planet-warming emissions from air travel.

However, the type of aircraft that Beta, Lilium, and many others are designing represents a different class altogether, one whose climate benefits aren’t immediately clear.

Electric vertical takeoff and landing vehicles, or eVTOLs, move up and down like helicopters and can accommodate a handful of passengers. Startups envision their aircraft as competing mainly with traditional helicopters, car taxis, and cargo vans, flying high above dense urban traffic to make urgent deliveries or to ferry deep-pocketed commuters.