February 28, 2025: US all-electric airplane start-up Eviation has reportedly grounded all operations as a temporary measure after failing to attract new funding.

The company, which moved to Washington state after its founding in Israel in 2015, is understood to have laid off most of its staff, two of the employees affected told The Seattle Times on February 14.

“The company is pausing operations indefinitely, most of the engineering team is gone,” one of the employees told the journal.

Eviation flew the first flight of its ‘Alice’ aircraft in 2022 — flying for eight minutes at an altitude of 3,500 feet.

The company completed what it called a conceptual design review of Alice last April. CEO Andre Stein said then that the firm had made “tremendous strides toward making the electric aviation revolution a commercial reality”.

In October, the company signed a letter of intent to supply up to 20 of the firm’s ‘Alice’ all-electric commuter aircraft to UrbanLink Air Mobility in Florida.

Eviation said Alice is powered by two magni650 electric propulsion units from Washington tech developer magniX, with battery support from Austria-based AVL.

The firm has said previously its goal is to serve the commuter and cargo markets, operating flights ranging from 150-250 miles.

Meanwhile, industry analysts say there is increasing investor turbulence buffeting electric plane pioneers.

Last December, a German aircraft manufacturer that specializes in electric vertical take-off and landing (eVTOL) aircraft, Volocopter, filed an application for the opening of insolvency proceedings while seeking investors.

However, on February 18, Volocopter said it would partner Jet Systems Hélicoptères Services to pursue eVTOL operations in France.

Separately, Volocopter rival Lilium filed for bankruptcy protection in Germany for two of its subsidiaries in October 2024, but announced a rescue deal with a consortium of European and North American investors at the end of the year.