The latest financial report from Harley-Davidson’s electric motorcycle venture LiveWire paints a troubling picture.
The company expects to lose between $105 and $115 million in operating costs this year.
Sales Numbers Tell a Story
Let’s talk numbers – LiveWire sold just 99 motorcycles in Q3 2024. While this is a dismal number, they managed to word it in a way on their summary of results to make it sound less dramatic.
Unit sales of 99 electric motorcycles, a double digit increase over third quarter 2023, which contributed to a triple digit increase in year-to-date unit sales over same period 2023.
The company also reported a $22.7 million net loss for the 3rd quarter of 2024, which is a 56% increase from the same period in 2023.
Below is the consolidated report that was shared on the call.
Scaling Back Expectations
The company has dramatically reduced its 2024 sales forecast. Instead of the original 1,000-1,500 motorcycles, they’re now aiming for 600-1,000 units.
To hit even the lower target, they need to sell 126 bikes in Q4 – during winter, when motorcycle sales typically plummet. In two quarters of 2024 they did not come near that number.
Cost-Cutting Measures
LiveWire is tightening its belt:
– They’ve cut $1.4 million in expenses
– Reduced engineering and administrative costs
– Relocated LiveWire Labs to Milwaukee
– Trimmed their workforce
Technical Troubles
The cost reductions come at a sensitive time. Both the S2 Del Mar and S2 Mulholland models have faced multiple recalls for serious issues:
– Unexpected power loss while riding
– Software problems causing shutdowns
– Loose axles and shock bolts that could cause crashes
The STACYC Factor
Even LiveWire’s bright spot is dimming. Their electric balance bike division, STACYC, saw sales drop 52% from 7,231 to 3,442 units.
Still, STACYC’s $3.2 million revenue outperformed LiveWire motorcycles’ $1.2 million.
Future Outlook
The contrast between LiveWire’s past promises and current reality is stark. In 2022, they projected selling:
– 15,736 units in 2024
– 53,341 units in 2025
– 190,000 units in 2026
Instead, they’ve sold less than 2,100 motorcycles total since launch.
Government Support
Despite these challenges, LiveWire recently received an $89 million government grant to upgrade production and quality. This comes as part of a larger $178 million investment plan, though questions remain about the need for increased production given current sales figures.
The electric motorcycle industry is proving to be a challenging space, with many manufacturers closing shop. While LiveWire has Harley-Davidson’s backing for now, its future remains uncertain in this competitive and difficult market.
Maybe, just maybe, EV manufacturers could take this as a sign that riders are just not interested in electric motorcycles. Fuell, Energica, and Sondors all recently closed up shop. Others who are still in the game are struggling.