When Harley-Davidson spun off its LiveWire electric motorcycle brand in 2022, the company seemed to have a promising future.
Instead of a traditional IPO, the company raised money via a $1.77 billion SPAC merger, and Harley kept a 74% stake. The company, however, struggled to gain traction, selling only 653 motorcycles in 2025, just 41 more than in 2024, according to The Autopian.
That has not turned around in 2026, and the struggling electric motorcycle brand has continued to lose money.
“The company’s consolidated net loss was $18.6 million for the third quarter 2026 as compared to $19.4 million in the same period prior year,” LiveWire shared in an Oct. 29 8-K filing.
LiveWire also issued a “Going Concern” warning, sharing serious concerns that it may not have enough cash to survive.
What LiveWire shared in its “going concern” warning
“Management has determined that conditions and events raise substantial doubt about the company’s ability to continue as a going concern within one year after the date the Company’s September 30, 2026 consolidated financial statements are issued,” LiveWire shared.
It blamed the warning on “the company’s recurring operating losses, negative cash flows from operations, limited liquidity resources, and anticipated future funding requirements contributed to this determination.”
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It also shared how it will attempt to rectify the situation.
“The company continues to evaluate and pursue comprehensive financing and other strategic alternatives, which may include significant capital raises, strategic partnerships or investments, sales, and other strategic transactions, intended to support the company’s operations and execution of its business plan,” it shared.
LiveWire also made it clear that “there can be no assurance that such efforts will be successful or that any such transaction will be available on terms acceptable to the Company, our lienholders or stockholders.”
LiveWire has lost more than $300 million since its 2022 spinoff, according to company filings.
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Harley-Davidson won’t pay for losses
At the time of the IPO, LiveWire had one EV bike model priced beginning at $16,999 and another at $22,799.
The question at the time, however, was “Will Americans embrace electric motorcycles?”
It’s reasonable to conclude they have not. LiveWire noted in its SEC filing that it controls 80% of the U.S. electric motorcycle 50+ kilowatt on-road EV segment, which suggests overall demand sits below 1,000 units per year.
Harley-Davidson President and CEO Artie Starrs was asked about LiveWire during the motorcycle giant’s Oct. 29 earnings call.
“We don’t intend to fund the operating losses of the team going forward,” Starrs said. “The team there has been working on other forms of capital. What’s been announced has been announced.”
Harley-Davidson now owns 88% of LiveWire.
LiveWire’s financial problems at a glance
- Going-concern warning: LiveWire warned on Oct. 29 that there is substantial doubt about its ability to continue operating as an independent company over the next year.
- Strategic alternatives: The company is evaluating options that include raising capital, partnerships, investments, asset sales, and other transactions.
- Cumulative losses: LiveWire has lost more than $300 million since its 2022 spinoff, according to The Wall Street Journal.
- 2025 operating loss: $75.5 million, down from $110.4 million in 2024.
- 2025 revenue: $25.7 million, down 4% from $26.6 million in 2024.
- 2025 motorcycle sales: 653 units, up 7% from 612 in 2024.
- 2025 electric motorcycle revenue: $6.1 million, down 28% from $8.4 million in 2024.
What is a “going concern” warning?
A going-concern warning does not mean a company is preparing to file for Chapter 11 bankruptcy, but it is a serious indication that its ability to remain in business is in question.
Companies facing that warning typically have a limited window to secure financing, restructure debt, or find another way to meet their obligations.
- Chapter 11 or Chapter 7 bankruptcy is one possible outcome if a company cannot meet its obligations and needs court-supervised restructuring.
- A company can also seek new financing, sell assets, find an investor, or negotiate with creditors to avoid bankruptcy.
The accounting standard itself, FASB ASC 205-40, specifically identifies the need to restructure debt or find new financing as potential indicators of substantial doubt.
“Overall, 16.8% of the first-time GCO (going concern) clients entered bankruptcy within one year,” according to an International Journal of Auditing study.
LiveWire’s struggles suggest a lack of demand
You can’t sell a product consumers don’t want.
Consumers have not been asking for electric motorcycles, BMW Motorrad CEO Markus Flasch said in a 2025 interview.
“For the moment, we don’t see the real demand for an electric motorcycle,” he said.
A study of British motorcycle riders showed that most had no interest in switching to an electric bike.
“The research, carried out by Warranty Solutions Group (WSG), found that 81% of riders would not currently consider swapping their petrol-powered machine for an electric motorcycle. The data showed that just 17% said they would be willing to make the switch,” VisorDown reported.
Karim Donnez, who had been LiveWire CEO since May 2023, resigned effective Oct. 21. The LiveWire board named Roy Gallagher chief restructuring officer, according to the regulatory filing.
Gallagher will report to a special restructuring committee of the LiveWire board. He is the senior managing director of Ankura Consulting Group LLC, a global consulting and expert advisory firm, according to the Ankura website.
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