Electric Motorcycle Manufacturer Energica Is Bankrupt

Italian electric motorcycle manufacturer Energica has announced it is bankrupt.

In an announcement on the company’s website (read it here), the board said the move towards bankruptcy liquidation is happening for three reasons. First, there is a decline in spending on EVs from consumers and investors. Second, the supply chain disruptions since COVID-19 have made it hard for small-to-medium companies to compete. Third, although they brought in major investment in 2022, they haven’t attracted enough cash since:

… The subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and consequently, compromised Energica’s investment capabilities.

The company has also faced challenges from the downturn in the automotive market and supply chain, being particularly affected as a small and medium-sized enterprise. The commitment to its objectives and mission has remained steadfast, as demonstrated by initiatives like the solidarity contract aimed at safeguarding workers and overcoming the difficult period.

Despite the efforts from the management in actively and extensively pursuing a search for new investors – always with the aim of preserving going concern in the best interest of creditors – it has become clear in the last few hours that these alternative options are no more viable, thus leaving the company with no other choice than resolving for the opening of a bankruptcy judicial liquidation… 

It’s very tough news for electric motorcycle fans, as Energica was the first battery bike maker to really challenge internal combustion-powered machines on a nearly-equal footing. Yes, Energica’s sportbikes and tourers were expense, and heavier than their gas-powered counterparts, but they weren’t too far off that mark, and they made an effort to drastically speed up recharging times. They were the first electric motorcycles that looked almost ready for serious moto touring.

For its R&D in the 2010s, Energica was rewarded with the contract to build the motorcycles used in MotoGP’s MotoE World Cup from 2019 through 2022, a contract currently held by Ducati. Don’t be surprised if the boys in Bologna are falling over themselves in a mad rush to snatch up Energica’s IP at bargain basement pricing right now.

In some ways, it feels like the Alta story all over again. While the specifics are obviously different, it’s another story of a small company that built a battery bike better than everyone else, only for market factors to drive it into bankruptcy.

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