Heart Aerospace's decision to relocate to the US indicates that Europe is 'pushing innovation away.'

      Swedish electric aircraft startup Heart Aerospace is moving its headquarters from Gothenburg to Los Angeles, which it claims will enhance product development. According to company spokesperson Christina Zander, all 75 employees in Sweden will be laid off. “Recruitment in the US is currently underway,” she noted.

      Founded in 2018, Heart Aerospace is developing a hybrid-electric 30-passenger airliner named the ES-30. The prototype, referred to as X1, is expected to make its first flight later this year.

      Tobias Bengtsdahl, a partner at the venture capital firm Antler, remarked to TNW that Heart's relocation to the US should act as a “wake-up call” for Europe’s tech industry. “Europe’s excessive regulations and lack of market interest are actively pushing innovation away,” said Bengtsdahl, who resides in Stockholm. “Every decision like this reinforces the idea that the US is a more favorable environment for innovation — this poses a challenge for Europe.”

      To date, Heart has raised nearly $200 million from investors, including Bill Gates’ Breakthrough Energy Ventures and the Swedish government. Founder Anders Forslund expressed that this strategic move would aid the company in “focusing our resources.” “Our customers, partners, and investors are increasingly located in the US,” Forslund stated. “By centralizing our operations in Los Angeles, we can speed up development, enhance collaboration, and better position Heart Aerospace for the future.”

      Indications of the shift had been apparent for some time. In May 2024, Heart launched an R&D center in Los Angeles. Additionally, the company conducted its first test flight in the US last year and secured a $4.1 million contract with the Federal Aviation Administration (FAA).

      Heart Aerospace has already received 250 orders and 191 letters of intent for the ES-30 from American airlines such as United Airlines and Mesa Airlines. The company has also obtained letters of intent for a total of 96 aircraft from Scandinavian Airlines (SAS), Sweden’s Braathens Regional Airlines, and Icelandair.

      Despite the transatlantic move, Zander emphasized that it does not alter the “fundamental partnerships” the company has established in Europe. “Our Scandinavian investors and suppliers remain valued partners, and we will continue collaborating with them as we advance our technology,” she said. “This transition to the US is a strategic decision to aid prototype development, but our connections in Europe continue to be an essential part of Heart Aerospace’s broader ecosystem.”

      The challenges and solutions surrounding the scaling of tech businesses in Europe will be a prominent discussion at the TNW Conference, scheduled for June 19-20 in Amsterdam. Tickets are now available — use code TNWXMEDIA2025 at checkout for a 30% discount.