Hyundai’s eVTOL startup Supernal pauses work following CEO and CTO departures

In a significant setback for Hyundai's electric air taxi initiative, Supernal has suspended operations on its aircraft program following the recent resignations of its CEO and CTO. This decision comes after several turbulent months characterized by staff reductions and strategic realignments, as reported by sources familiar with the situation. Supernal's challenges are particularly noteworthy given the company's recent advancements, including its inaugural test flight of a technology demonstrator earlier this year. Despite some progress in testing, the startup was still aiming for its first untethered flight, which will now be delayed due to the current pause. The ambitious plan to roll out a commercial service by 2028 now hangs in the balance. The departure of CEO Jaiwon Shin was confirmed last week, alongside the exit of CTO David McBride. While the company has not publicly commented on McBride’s leaving, it stated that new leadership would evaluate the timeline for future operations. Reports indicate that David Rottblatt, the senior business development director, is currently managing Supernal's business operations during this transition period as the interim COO. The electric air taxi sector is facing significant volatility, with some companies like Joby, supported by Toyota, successfully securing funding and forming partnerships, while others like Lilium have ceased operations altogether. Supernal, which emerged from the Hyundai Group in 2021, has already experienced layoffs and the abrupt closure of its Washington, D.C. headquarters last year. Looking ahead, the Hyundai Group has expressed intentions to appoint new leadership with the necessary expertise to drive Urban Air Mobility (UAM) solutions and steer the company towards its next growth phase. This shakeup follows a series of challenges faced by other innovative ventures under Hyundai’s umbrella, including significant restructuring at its autonomous vehicle startup Motional after a partner withdrew financial support. As the industry continues to evolve, the future of Supernal's electric air taxi program remains uncertain, raising questions about the viability of such initiatives in a rapidly changing landscape.