They say numbers don’t lie. And that’s particularly true for financial performance figures revealed by companies. What might seem all hunky dory to us could be well under a loss in reality. A fitting example of this is our very own Harley-Davidson. No, the Motor Company as a whole isn’t having financial troubles, but H-D’s EV initiative LiveWire sure is.
Ever since it became a standalone brand, LiveWire hasn’t been profitable, and the recent second-quarter results followed the same trend. They showed a massive net loss, leaving only adjectives like dismal and pitiful for the EV maker’s financials. Other numbers (sales, production, shipments) are all going downhill too, only to make matters worse. However, there could be a lifeline here, namely the new S2 Del Mar electric motorcycle. Let’s assess.
Harley-Davidson Shipped 33 Electric Motorcycles In The Second Quarter Of 2023
Prior to the S2 Del Mar, LiveWire only had the One (previously, Harley-Davidson LiveWire) in its lineup. The electric motorcycle serves duty as a ‘premium’ EV with an MSRP of $22,799–not exactly easy on the pocket. So there are barely any takers for it, which shows in the horribly low production number. Only 33 units of the One were shipped in the second quarter, a whopping 84 percent dip compared to the same time last year.
These units only racked up $0.8 million out of the total $7 million revenue for LiveWire. Where did the other 6.2 come from, you ask? Well, via the company’s electric balance bike for children, STACYC. To make matters worse, electric motorcycles caused a whopping $32 million loss while the balance bike did better here again (with just $0.1 million in losses). The former is 58 percent more than last year.
So it’s safe to assume Harley-Davidson’s electric motorcycle plan is nowhere near on course. Instead of getting better by the year, things are worse than before. And this is a trend we’ll continue to see at least till 2024. That’s because the company has slashed its production aim to just 1,000 electric motorcycles for 2023. The figure is nowhere near Harley-Davidson’s 7,000 unit projection for 2023, which, in turn, makes its 100,000 unit production target by 2026…laughable.
Plus, even if there’s a 20 percent margin on each LiveWire One, the revenue would still be $4.5 million–just a faint drop in Harley-Davidson’s total revenue. Plus, nowhere near enough to offset LiveWire’s net losses. Considering the same, H-D expects a total year-end loss of $115 to $125 million for the EV company.
The LiveWire S2 Del Mar Should Come As A Lifeline For Harley-Davidson
As disheartening as all that may be, we expect things to look up soon. And full credit for that will go to the S2 Del Mar. With the electric motorcycle finally launched, it promises to bring a new lease of life for LiveWire, thanks to its strong $15,499 price point. Unlike the One, this is a lot easier on the pocket and will make the brand more accessible to a variety of riders (experienced, newbies, or just commuters).
Not to mention, the current electric motorcycle market favors entry-level offerings rather than premium ones. Most of us are still inclined toward conventional ICE motorcycles, leaving electrics either as a secondary addition to the garage or just an experiment. And no one wants to spend $20,000 for testing the water. The lack of EV infrastructure (at least for e-motorcycles) doesn’t help either.
2023 LiveWire S2 Del Mar Is A Perfect ‘First’ Electric Motorcycle
The S2 Del Mar fits the bill perfectly. It offers plenty of stuff for the money, without trying to be your do-it-all motorcycle. You get 84 horsepower and 194 pound-feet, more than enough for the city and occasional highway stints. This enables a 0 to 60mph sprint in just three seconds, in addition to a top speed of 103 mph. Concurrently, the battery pack offers a city range of 113 miles and a combined range of 86 miles (at 55mph). Increasing the pace to 70mph drops it further to 62 miles.
Also part of the package is a likable set of features. All-LED lighting, dual-channel ABS, and a TFT instrument cluster come standard and so does smartphone connectivity. Plus, the display lets you toggle through electronics like cornering ABS, traction control, slip control, and five ride modes (Sport, Road, Range, Rain, Custom).
So do you think the clouds over LiveWire’s present will go away in the future? Or will Harley-Davidson take a drastic measure with the EV brand? Let us know in the comments.