In 2024, President Joe Biden’s Power Division awarded $1.7 billion in grants to extend home manufacturing of electrical automobiles (E.V.s), together with $89 million to Harley-Davidson to develop its manufacturing plant in Pennsylvania for electrical bike manufacturing. On the time, Power Secretary Jennifer Granholm claimed the funding would “be certain that our automotive business stays aggressive.” Then-Sen. Bob Casey (D–Pa.) championed the grant, together with his workplace declaring that it could “assist Harley Davidson make investments essential to hit its aim of manufacturing extra zero-emission bikes.”
Greater than a yr later, it seems that this funding plan is failing.
Regardless of the $89 million in authorities subsidies supplied to LiveWire, which was initially launched as a part of Harley-Davidson however has since spun off, the corporate has bought solely 55 electrical bikes within the second quarter of 2025, a 65 p.c decline in comparison with the identical quarter in 2024. Within the second quarter of 2025, LiveWire’s electrical bike enterprise yielded $800,000 in income. Total, within the second quarter of 2025, the corporate generated $5.9 million in consolidated income from its electrical bikes and electrical bikes.
LiveWire has operated at a loss since its founding in 2021. After peaking at $46.83 million in 2022, annual income has declined for 2 consecutive years, dropping 43 p.c from the corporate’s peak yr in 2022. The corporate has by no means had a worthwhile quarter, a development that’s anticipated to proceed by means of 2025.
Whereas it is projected gross sales of as much as 3,000 electrical bikes over the previous two years, LiveWire has bought solely 2,418 electrical bikes since its inception in 2021. Final yr, the corporate bought simply 612 bikes, falling wanting its 2023 gross sales of 660 machines and properly beneath its preliminary 2024 projection of 1,000 to 1,500 bikes. Regardless of a historical past of lacking gross sales targets, LiveWire once more projected gross sales of 1,000 to 1,500 electrical bikes for 2025.
A major enchantment of gas-powered bikes lies within the proprietor’s means to customise their bike. By design, electrical bikes are quiet and tough to change.
Though the upfront price of LiveWire electrical bikes is considerably decrease than most new Harley-Davidson gasoline fashions, LiveWire’s financials counsel that the market has clearly expressed its desire. The $89 million grant to Harley-Davidson is just one in a protracted checklist of failed, expensive inexperienced vitality tasks funded by the Biden administration, which additionally features a $9.63 billion mortgage to Ford to construct three manufacturing crops for the corporate’s E.V. batteries in Tennessee and Kentucky. Solely one in all these factories has been constructed—and has but to roll out batteries—whereas the opposite two don’t have any set opening date.
In Might, amid a continued decline in gross sales, Harley-Davidson suspended its full-year monetary forecast as a result of imposition of President Donald Trump’s tariffs. If the corporate’s second-quarter monetary outlook is any indication of future efficiency, there shall be little aid to come back. Within the second quarter of 2025, Harley-Davidson’s income dropped 19 p.c year-over-year, with world bike shipments down 28 p.c. Up to now, tariffs have price the corporate $17 million in 2025.
Like many different tasks earlier than it, authorities funding has not helped LiveWire flip a revenue. It has as an alternative artificially extended its monetary runway and doubtlessly discouraged disruptive pondering and entrepreneurial spirit.
