Hyundai’s Electric Air Taxi Startup Supernal Pauses Work on Aircraft Program After Executive Shakeup

Hyundai’s electric air taxi venture, Supernal, has temporarily halted progress on its aircraft program following a series of challenges in recent months. Two reliable sources confirmed this development to our team, requesting anonymity to discuss confidential company matters.

The setbacks come at a crucial stage for Supernal, which is yet to take off literally. While the first test flight of its technology demonstrator took place earlier this year, the company was still working towards its inaugural untethered test flight before the pause. The plan was to commence commercial operations by 2028.

News about the departure of CEO Jaiwon Shin surfaced last week. David McBride, the CTO, has also left the company, according to our sources. The Orange County Register first reported on the halt in Supernal’s flight program and McBride’s exit.

Regarding commercial operations, the startup stated that its newly appointed leadership will evaluate and determine an appropriate timeline for future progress. No comment was provided regarding McBride’s departure.

The electric air taxi sector is currently experiencing turbulence, with some companies like Toyota-backed Joby securing partnerships and acquisitions, while others, such as Lillium, have ceased operations.

Established in 2021 as a spin-off from the Hyundai Group, Supernal downsized its workforce by several dozen personnel earlier this summer prior to the executive shakeup. This followed the abrupt closure of their Washington, D.C. headquarters towards the end of last year, as previously reported.

David Rottblatt, Supernal’s senior business development director, is currently overseeing the company’s business operations during this transition in the role of Interim COO. The larger Hyundai Group intends to appoint new leadership with extensive expertise in business operations to drive advancements in Urban Air Mobility (UAM) solutions and steer the organization towards its next phase of growth, as stated in a press release announcing Shin’s departure.

The promised test flight had been eagerly anticipated by the former CEO. At the 2024 Consumer Electronics Show, where Supernal displayed a larger, non-flying concept vehicle, Shin discussed their readiness to “push the boundaries of technology with the demonstrator.” In August 2024, McBride told Vertical Mag that the test flight would “demonstrate our ability to build an aircraft” ahead of the planned 2028 commercial launch.

This marks the second futuristic venture under the Hyundai umbrella to face difficulties in recent years. In 2024, the Korean conglomerate had to strengthen its commitment to autonomous vehicle startup Motional after backing partner Aptiv decided to discontinue funding what was once a joint venture. This led to significant restructuring at Motional late last year, including layoffs of approximately 40% of its staff, and eventually the departure of CEO Karl Iagnemma.