Supernal Pauses eVTOL Development After Leadership Changes

Supernal Pauses Electric Air Taxi Development

Hyundai’s electric air taxi venture, Supernal, has temporarily halted development of its aircraft. This follows a period of internal changes, including workforce reductions and the resignations of key executives, as reported by sources familiar with the situation to TechCrunch.

Recent Leadership Changes and Program Status

The pause in development occurs early in Supernal’s operational lifespan. The company’s initial technology demonstrator flight took place earlier this year. While subsequent tests have been conducted, the first untethered flight was still pending before the program was put on hold. Previously, Supernal aimed to initiate commercial services by 2028.

Late last week, the departure of CEO Jaiwon Shin was announced. Additionally, Chief Technology Officer David McBride has also left the company, according to individuals who requested anonymity due to the sensitive nature of the information. The Orange County Register was the first to report on both the flight program suspension and McBride’s exit.

Company Response and Future Plans

Regarding the planned commercial launch, Supernal stated that the “newly appointed leadership will assess and determine the optimal timeline moving forward.” The company did not provide comment on McBride’s departure.

Industry Context and Challenges

Supernal’s difficulties are occurring within a broader period of flux in the electric air taxi industry. While some companies, such as Joby – backed by Toyota – are securing funding and forming partnerships, others, like Lilium, have ceased operations.

Established in 2021 as a spin-off from the Hyundai Motor Group, Supernal implemented layoffs affecting dozens of employees earlier this summer, preceding the executive changes. This followed the unexpected closure of its Washington, D.C. headquarters late in the previous year, as previously covered by TechCrunch.

Interim Leadership and Strategic Direction

Currently, David Rottblatt, Supernal’s senior business development director, is serving as Interim COO, overseeing the company’s business operations during this transitional phase. The Hyundai Motor Group intends to appoint new leaders with extensive experience in business operations to further Urban Air Mobility (UAM) solutions and guide the organization toward its next growth stage, as stated in the press release concerning Shin’s departure.

Previous Expectations and Demonstrator Flight

The initial test flight had been consistently highlighted by the former CEO. At the 2024 Consumer Electronics Show, where a larger, non-flying concept vehicle was showcased, Shin indicated that Supernal was on the verge of “pushing the limits of the technology with the demonstrator.” McBride previously informed Vertical Mag in August 2024 that the test flight would “validate our ability to build an aircraft” in preparation for the anticipated 2028 commercial launch.

Broader Hyundai Ventures and Past Difficulties

This represents the second forward-looking venture under the Hyundai umbrella to encounter challenges in recent years. In 2024, the Korean conglomerate increased its investment in its autonomous vehicle startup, Motional, after its partner, Aptiv, decided to discontinue funding their joint venture. This resulted in a significant restructuring at Motional last year, including layoffs affecting approximately 40% of its workforce and the eventual resignation of CEO Karl Iagnemma.