Harley Davidson’s subsidiary LiveWire is off to a rough start as the electric motorcycle manufacturer is struggling to raise investor and consumer sentiment during the current economic climate.
The Milwaukee-based Harley Davidson has always been a staple for what many would call a “hog” due to the large size and imposing sound of their bikes, shifting away from this with their new electric bikes has left many cautious of how they would perform.
The original SPAC deal that was concluded in late September only yielded roughly half of what Harley initially anticipated with investors withdrawing at rapid rates. This resulted in Harley needing to pour cash into LiveWire in order to fund its operations.
Harley stated that they expected to see LiveWire experience a $1.7 billion revenue increase by 2026 but estimates are quickly dropping to be much lower than previously expected. A Harley spokeswoman stated that they are not too concerned about the underperformance of the new electric motorcycles and believes that LiveWire will be able to operate with flexibility in order to experience growth. The company has also stated that the price of the original LiveWire model will see a reduction in price from $30,000 to $22,000. In addition, the company intends on rolling out a second model that will be priced at $16,000 and finally a third model priced even below that.
Source: Financial Times