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Author Topic: Is anyone making money selling electric motorcycles?  (Read 599 times)

Richard230

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Is anyone making money selling electric motorcycles?
« on: January 20, 2019, 05:26:51 AM »

I keep wondering if any of the current companies selling production electric motorcycles or scooters are actually making any money on the project.  ???  Looking at the BMW C-Evolution scooter, Energica, and lesser brands, I really would be surprised if they are selling them at a price that pays them back for all of the R&D and manufacturing cost.  ???  I even doubt that Zero is making a profit on the sale of each bike, although if anyone is, it is probably that company. It seems to me that the cost of the components and engineering that went into these and other EV's just doesn't pencil out per unit, without being "backstopped" by investor funding or other more profitable units of an established brand, like BMW. Just look at Tesla, they are selling hundreds of thousands of cars and are still not making a profit. How can small electric motorcycle and scooter companies do any better, considering the size of the market - the Chinese market for city scooters and e-bikes likely being the exception.

The way I have it figured, we will know that there is money to be made by the industry when one of more of the established Japanese brands start selling high-performance electric motorcycles in the U.S. or Europe.  ???
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BrianTRice@gmail.com

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Re: Is anyone making money selling electric motorcycles?
« Reply #1 on: January 20, 2019, 08:04:49 AM »

It is my understanding that any revenue per unit if it even breaks even is channeled into R&D.

And yes many bikes are sold at a loss or absolutely minimal margin.

And sometimes an upstream supplier might be taking a lower margin, since none of these bikes is produced in enough quantities to ensure bulk orders.

So the short answer is a firm negative.

But many existing motorcycle companies struggle to stay afloat this last decade, anyway.
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Moto7575

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Re: Is anyone making money selling electric motorcycles?
« Reply #2 on: January 20, 2019, 01:21:05 PM »

I think Zero is still cash negative after 10 years (I read this from a corporate interview).
For BMW i think they are the one who will be profitable the first - they're selling 4-5 times more models than Zero here, and the growth is higher.
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Richard230

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Re: Is anyone making money selling electric motorcycles?
« Reply #3 on: January 20, 2019, 08:19:13 PM »

I think Zero is still cash negative after 10 years (I read this from a corporate interview).
For BMW i think they are the one who will be profitable the first - they're selling 4-5 times more models than Zero here, and the growth is higher.

But then BMW really doesn't need to make a profit on sales on their two-wheel EV products, as not only do they have a real money-making auto division to support any unit losses, but they also are interested in the value of "political and social points" for manufacturing EVs.  It is the little guys with big visions that are really at risk.  Just take a look at the list of manufacturers on this forum that are not around anymore. And a lot more are popping up almost ever day, most of which are never heard of again. It is an interesting time to be in the EV industry, but likely not a profitable one.  ;)
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NEW2elec

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Re: Is anyone making money selling electric motorcycles?
« Reply #4 on: January 20, 2019, 09:07:25 PM »

Yes Richard I feel it's a market share grab right now and basically no profit.  They are probably hoping for a buy out or merger like it appears Alta was.  I hope they come back by the way that looked like a good little dirt bike.
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Moto7575

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Re: Is anyone making money selling electric motorcycles?
« Reply #5 on: January 20, 2019, 09:08:33 PM »

BMW do have cash, but they are not in the charity business  ! Agree that small companies will suffer when the next crisis comes (which might already be there). Then they will either bankrupt or be sold to companies with more cash.

I think Zero is still cash negative after 10 years (I read this from a corporate interview).
For BMW i think they are the one who will be profitable the first - they're selling 4-5 times more models than Zero here, and the growth is higher.

But then BMW really doesn't need to make a profit on sales on their two-wheel EV products, as not only do they have a real money-making auto division to support any unit losses, but they also are interested in the value of "political and social points" for manufacturing EVs.  It is the little guys with big visions that are really at risk.  Just take a look at the list of manufacturers on this forum that are not around anymore. And a lot more are popping up almost ever day, most of which are never heard of again. It is an interesting time to be in the EV industry, but likely not a profitable one.  ;)
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