The race to build flying taxis has captured the imagination of investors, automakers, and technology firms around the world. Electric vertical take-off and landing aircraft, also known as eVTOLs, promise to transform city travel by reducing road congestion and offering faster commutes. Hyundai joined this race in 2020 with its ambitious startup, Supernal. The company aimed to launch a fully commercial flying taxi service by 2028.
On September 7, 2025, the dream faced a major setback. Supernal announced that it would stop operations after both its CEO and CTO resigned. The announcement shocked the mobility industry because Supernal had just completed its first successful test flight earlier this year. The pause raises questions about the future of Hyundai’s aviation ambitions and the state of the eVTOL market.
Supernal’s Origins and Hyundai’s Vision
Hyundai created Supernal to position itself as more than just a carmaker. The company wanted to redefine mobility by exploring the skies. The vision aligned with Hyundai’s larger plan to move beyond traditional vehicles and enter advanced transportation markets.
Supernal planned to build safe, affordable, and sustainable air taxis. The startup’s engineers designed compact aircraft powered by electricity, which could take off vertically like a helicopter and fly quietly over cityscapes. Hyundai believed this could solve urban congestion problems while cutting carbon emissions.
The startup also entered partnerships with aerospace firms, regulators, and local governments to build the infrastructure needed for urban air mobility. From vertiports to air traffic systems, Hyundai promised to develop the entire ecosystem.
Leadership at the Core of Supernal
Supernal’s leadership played a key role in pushing the project forward. The CEO, who came from a background in aerospace strategy, brought vision and bold targets. The CTO provided technical expertise and guided the aircraft design, testing, and certification process.
Both leaders worked together to attract top talent, form global partnerships, and secure regulatory approvals. Under their leadership, Supernal grew from a concept into a company that actually put an eVTOL aircraft in the air. Their sudden exit caught employees, investors, and industry watchers off guard.
The First Test Flight and What It Meant
In early 2025, Supernal achieved a milestone that boosted confidence in the project. The team conducted its first test flight of the prototype aircraft. Engineers and executives celebrated the event, calling it a major step toward commercial service.
The test showed that Supernal’s aircraft could lift off vertically, hover, and perform short maneuvers safely. Industry analysts saw the flight as proof that Hyundai could compete with rivals such as Joby Aviation, Archer Aviation, and Lilium. For a moment, the company appeared ready to claim a spot among the leaders in the eVTOL race.
Why Did Supernal Pause Operations?
The company has not shared many details about the reasons behind the leadership exits. However, reports suggest that disagreements over strategy and funding priorities created tension.
Hyundai faced rising development costs and uncertain timelines for certification. Unlike cars, eVTOLs must clear strict aviation safety standards, which often take years to complete. Meeting these requirements demands huge capital and close cooperation with regulators.
Some insiders believe that Hyundai struggled to balance the costs of its traditional automotive business with the high demands of its aviation startup. The resignations of the CEO and CTO likely reflected deeper internal disagreements on how to move forward.
Impact on the eVTOL Industry
Supernal’s pause has shaken the confidence of many who believed in the eVTOL market’s fast growth. Analysts now ask whether the industry has set unrealistic targets. Many startups promised commercial flights by the late 2020s, but most still face technical, regulatory, and financial hurdles.
Supernal’s setback highlights how even large companies with deep pockets and engineering expertise can face delays. It sends a message that success in eVTOLs requires more than just ambition. Stability in leadership, long-term investment, and careful coordination with regulators matter just as much as innovation.
Competitors may use this moment to strengthen their positions. Joby Aviation in the U.S., Volocopter in Germany, and Archer Aviation in California continue to push forward with test flights and partnerships. Investors will watch closely to see whether these players can avoid the challenges that halted Supernal.
What This Means for Hyundai
For Hyundai, the pause marks a blow to its image as a forward-looking mobility leader. The company invested heavily in branding Supernal as a key part of its future. It even showcased its flying taxi designs at global events such as CES in Las Vegas.
Now, Hyundai must decide whether to revive Supernal with new leadership or rethink its aviation strategy. Pulling back could save money but risk losing ground to rivals. Pushing ahead would demand renewed commitment, larger budgets, and a willingness to face uncertain timelines.
Hyundai still has the option to partner with other eVTOL players instead of leading its own effort. Strategic alliances could reduce risks while keeping Hyundai involved in the space.
The Broader Context of Urban Air Mobility
The promise of eVTOLs remains strong despite Supernal’s pause. Urban air mobility continues to attract investment worldwide. Governments in the U.S., Europe, and Asia support the development of air taxis as part of future smart city plans.
Airlines, ride-sharing companies, and logistics firms see value in fast, quiet, and zero-emission aircraft. Prototypes continue to fly in test programs, and infrastructure projects for vertiports are already underway in some cities.
Supernal’s pause may slow momentum but will not end the global race. Instead, it serves as a reminder that building a new aviation industry takes patience, capital, and resilience.
Employee and Investor Concerns
Supernal’s employees now face uncertainty about their future. Many joined the startup because they believed in Hyundai’s bold vision. The leadership exits and operational pause may push some talent to competitors.
Investors, too, must weigh the risks. Those who saw Hyundai as a safe bet in eVTOLs may question whether the industry is more fragile than expected. Confidence could return if Hyundai quickly outlines a new plan and leadership structure.
Possible Next Steps
Hyundai could take several paths in response to Supernal’s troubles:
- Appoint new leadership quickly – Fresh leadership could stabilize the project and reassure partners.
- Form stronger partnerships – Collaborations with aerospace firms could reduce costs and share risks.
- Shift focus to partial projects – Hyundai could prioritize developing components, such as batteries or control systems, instead of building a full aircraft.
- Pause and reassess – The company could step back, study market conditions, and re-enter later with a refined strategy.
Each path carries different risks and opportunities. Hyundai’s decision will shape how the industry views its role in future mobility.
Conclusion
Supernal’s story shows how hard it is to turn futuristic dreams into reality. Hyundai set out to lead the eVTOL revolution and made quick progress. A successful test flight raised expectations, but leadership exits and financial pressure forced the company to pause.
The future of Supernal remains uncertain. Hyundai must now prove whether it has the commitment and vision to continue the journey. The wider industry will watch closely, because the outcome will influence confidence in the entire eVTOL market.
Flying taxis may still become part of everyday life in the future, but the path to get there is far from smooth. Supernal’s turbulence reminds everyone that breakthroughs in mobility demand more than just bold ideas—they require endurance, leadership, and trust.
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